Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
China e-Wallet Payment Group Limited
中 國 錢 包 支 付 集 團 有 限 公 司 *
(a company incorporated in Bermuda with limited liability)
(Stock Code: 802)
PRELIMINARY RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
The board (the "Board") of directors (the "Directors") of China e-Wallet Payment Group Limited (the "Company") announced the audited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 December 2020 together with comparative figures for the year ended 31 December 2019 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 31 December 2020
2020 | 2019 | ||||
Notes | HK$'000 | HK$'000 | |||
Revenue | 4 | 60,324 | 93,904 | ||
Cost of sales | (46,239) | (75,854) | |||
Gross profit | 14,085 | 18,050 | |||
Other revenue and gains | 10,320 | 252 | |||
Fair value loss on derivative financial assets | - | (542) | |||
Unrealised loss on financial assets at fair value | (399) | ||||
through profit or loss, net | (1,213) | ||||
Allowance for expected credit losses on trade and | (5,052) | ||||
other receivables | (7,903) | ||||
Selling and administrative expenses | (69,480) | (87,691) | |||
Loss from operations | 5 | (50,526) | (79,047) | ||
Finance costs | 6 | (899) | (764) | ||
Loss before taxation | (51,425) | (79,811) | |||
Taxation | 7 | 297 | 4,082 | ||
Loss for the year | (51,128) | (75,729) | |||
Loss for the year attributable to: | |||||
(41,800) | |||||
Owners of the Company | (74,635) | ||||
Non-controlling interests | (9,328) | (1,094) | |||
(51,128) | (75,729) | ||||
Loss per share | HK cents | HK cents | |||
(1.52) | |||||
- Basic and diluted | 8 | (2.72) | |||
- For identification purposes only
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2020
2020 | 2019 | |||
Notes | HK$'000 | HK$'000 | ||
Loss for the year | (51,128) | (75,729) | ||
Other comprehensive loss for the year: | ||||
Items that may be reclassified to profit or loss: | ||||
Release of translation reserve upon disposal | ||||
of subsidiaries | (4,410) | - | ||
Exchange differences on translating foreign operations | (8) | (3,096) | ||
(4,418) | (3,096) | |||
Total comprehensive loss for the year | (55,546) | (78,825) | ||
Total comprehensive loss for the year attributable to: | ||||
Owners of the Company | (46,218) | (77,731) | ||
Non-controlling interests | (9,328) | (1,094) | ||
(55,546) | (78,825) | |||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
2020 | 2019 | |||
Notes | HK$'000 | HK$'000 | ||
ASSETS | ||||
Non-current assets | ||||
Property, plant and equipment | 333 | 740 | ||
Goodwill | 4,686 | 4,686 | ||
Intangible assets | 19,109 | 25,755 | ||
24,128 | 31,181 | |||
Current assets | ||||
Financial assets at fair value through profit or loss | 17,463 | 15,707 | ||
Trade receivables | 10 | 8,776 | 41,065 | |
Deposits, prepayments and other receivables | 398,507 | 443,954 | ||
Cash and bank balances | 4,824 | 8,199 | ||
429,570 | 508,925 | |||
Total assets | 453,698 | 540,106 | ||
CAPITAL AND RESERVES | ||||
Share capital | 109,749 | 109,749 | ||
Reserves | 312,790 | 348,843 | ||
Equity attributable to owners of the Company | 422,539 | 458,592 | ||
Non-controlling interests | 1,649 | 10,977 | ||
Total equity | 424,188 | 469,569 | ||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
As at 31 December 2020
2020 | 2019 | |||
Notes | HK$'000 | HK$'000 | ||
LIABILITIES | ||||
Non-current liability | ||||
Deferred tax liabilities | 4,778 | 6,439 | ||
Current liabilities | ||||
Trade payables | 11 | 1,303 | 24,797 | |
Accruals and other payables | 20,527 | 37,225 | ||
Convertible notes | - | - | ||
Tax payables | 2,902 | 2,076 | ||
24,732 | 64,098 | |||
Total liabilities | 29,510 | 70,537 | ||
Total equity and liabilities | 453,698 | 540,106 | ||
Net current assets | 404,838 | 444,827 | ||
Total assets less current liabilities | 428,966 | 476,008 | ||
Net assets | 424,188 | 469,569 | ||
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2020
-
GENERAL INFORMATION
China e-Wallet Payment Group Limited (the "Company") was incorporated in Bermuda an exempted company with limited liability under Companies Act of Bermuda. The addresses of the registered office and principal place of business of the Company are Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda and Room 626-629, Corporation Park, 11 On Lai Street, Siu Lek Yuen, Sha Tin, New Territories, Hong Kong respectively. The Company's shares are listed on the Main board of the The Stock Exchange of Hong Kong Limited (the "Stock Exchange").
The consolidated financial statements are presented in Hong Kong dollars ("HK$"), which is also the functional currency of the Company and all values are rounded to nearest thousand except otherwise indicated. - BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board ("IASB"). These consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange and with the disclosure requirements of the Hong Kong Companies Ordinance (Cap.622). Significant accounting policies adopted by the Group are disclosed below.
The IASB has issued certain new and revised IFRSs that are first effective or available for early adoption for the current accounting period of the Group. Note 3 provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current and prior accounting periods reflected in these consolidated financial statements. - ADOPTION OF NEW AND REVISED IFRS
The Group has applied the Amendments to Reference to the Conceptual Framework in IFRS Standards and the following amendments to IFRSs issued by the IASB for the first time, which are mandatorily effective for the annual period beginning on or after 1 January 2020 for the preparation of the consolidated financial statements:
Amendments to IAS 1 and IAS 8 | Definition of Material | |
Amendments to IFRS | 3 | Definition of a Business |
Amendments to IFRS | 9, IAS 39 and IFRS 7 | Interest Rate Benchmark Reform |
The application of the Amendments to References to the Conceptual Framework in IFRS Standards and the amendments to IFRSs in the current year had no material impact on the Group's financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements.
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3. ADOPTION OF NEW AND REVISED IFRSs (CONTINUED) New and revised IFRSs in issue but not yet effective
The Group has not applied any new and revised IFRSs that have been issued but are not yet effective for the financial year beginning 1 January 2020. These new and revised IFRSs include the following which may be relevant to the Group.
Effective for | ||
accounting | ||
periods | ||
beginning on | ||
or after | ||
Amendments to IFRS 3 | Reference to the Conceptual Framework | 1 January 2022 |
Amendments to IAS 16 | Property, plant and equipment: | |
proceeds before intended use | 1 January 2022 | |
Amendments to IAS 37 | Onerous contracts - cost of fulfilling a contract | 1 January 2022 |
Annual Improvements to IFRSs 2018 - 2020 Cycle | 1 January 2022 | |
Amendments to IAS 1 Classification of liabilities as current or non-current | 1 January 2023 | |
Hong Kong Interpretation 5 (2020) Presentation of Financial Statements | ||
- Classification by the Borrower of a Team Loan that contains a repayment | ||
on Demand Clause | 1 January 2023 |
The Group is in the process of making an assessment of what the impact of these amendments and new standards is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the consolidated financial statements.
4. REVENUE AND SEGMENT INFORMATION
The chief operating decision-maker (the "CODM") has been identified as the key management of the Group. The CODM reviews the Group's internal reporting in order to assess performance and allocate resources. The CODM has determined the operating segments based on these reports.
The CODM considers the business from both a business and geographic perspective. From business perspective, CODM assesses the performance of internet and mobile's application and related accessories operating segments.
- Internet & mobile's application and related accessories segment are mobile payment platform and gaming industry and in particular in application development for merchants, online gaming, interactive virtual reality experience utilities application for mobile platform and mass advertising.
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4. REVENUE AND SEGMENT INFORMATION (CONTINUED)
The following table presents the Group's revenue, segment results and other information for business segments:
Internet and Mobile's | |||||||||||||
Application and Related | |||||||||||||
Accessories | Unallocated | Total | |||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | ||||||||
Revenue - external sales | 60,324 | 93,904 | - | - | 60,324 | 93,904 | |||||||
Segment results | (42,816) | (47,857) | - | - | (42,816) | (47,857) | |||||||
Unallocated other operating income | 765 | 9 | |||||||||||
Fair value loss of derivative | |||||||||||||
financial assets | - | (542) | |||||||||||
Gain on disposal of subsidiaries | 9,555 | - | |||||||||||
Unrealised loss on financial assets | |||||||||||||
at fair value through profit or loss | (399) | (1,213) | |||||||||||
Realised gain on disposal of | |||||||||||||
financial asset at fair value | |||||||||||||
through profit or loss | - | 243 | |||||||||||
Unallocated expenses | (17,631) | (29,687) | |||||||||||
Finance costs | (899) | (764) | |||||||||||
Loss before taxation | (51,425) | (79,811) | |||||||||||
Taxation | 297 | 4,082 | |||||||||||
Loss for the year | (51,128) | (75,729) | |||||||||||
Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the current year (2019: Nil).
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4. REVENUE AND SEGMENT INFORMATION (CONTINUED)
The accounting policies of the operating segments are the same as the Group's accounting policies. Central revenue and expenses are not allocated to the operating segments as they are not included in the measure of the segments' results that is used by the CODM for assessment of segment performance. Segment assets do not include financial assets at fair value through profit or loss and other unallocated head office and corporate assets. Segment liabilities do not include deferred tax liabilities, tax payables and other unallocated head office and corporate liabilities.
Internet and Mobile's | |||||||||||||
Application and Related | |||||||||||||
Accessories | Unallocated | Total | |||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||
HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | ||||||||
Segment assets | 453,358 | 521,172 | 340 | 18,934 | 453,698 | 540,106 | |||||||
Segment liabilities | 3,220 | 27,713 | 26,290 | 42,824 | 29,510 | 70,537 | |||||||
Other segment information: | |||||||||||||
Capital expenditure | 27 | 171 | - | - | 27 | 171 | |||||||
Loss on disposal of property, | |||||||||||||
plant and equipment | - | (683) | (6) | - | (6) | (683) | |||||||
Fair value loss of derivative | |||||||||||||
financial assets | - | - | - | (542) | - | (542) | |||||||
Unrealised loss on financial assets | |||||||||||||
at fair value through profit or loss | - | - | (399) | (1,213) | (399) | (1,213) | |||||||
Depreciation of property, plant and | |||||||||||||
equipment | (382) | (388) | (6) | (6) | (388) | (394) | |||||||
Amortisation of intangible assets | (6,646) | (6,646) | - | - | (6,646) | (6,646) | |||||||
Allowance for expected credit losses | |||||||||||||
on trade receivables | (750) | (1,149) | - | - | (750) | (1,149) | |||||||
Allowance for expected credit losses | |||||||||||||
on deposits, prepayments | |||||||||||||
and other receivables | (4,302) | (6,754) | - | - | (4,302) | (6,754) | |||||||
Finance costs | - | - | (899) | (764) | (899) | (764) | |||||||
The Group's revenue from its major products and services were as follow: | ||||
Disaggregation of revenue from contracts with customers | ||||
2020 | 2019 | |||
HK$'000 | HK$'000 | |||
Revenue from contracts with customers within the scope of IFRS 15: | ||||
Mobile's application development and settlement application services | 59,319 | 90,742 | ||
Computer and mobile related electronic products | 1,005 | 3,162 | ||
60,324 | 93,904 | |||
Time of revenue recognition: | ||||
At a point in time | 60,324 | 93,904 | ||
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4. REVENUE AND SEGMENT INFORMATION (CONTINUED) Geographical information
The Group operates in two principal geographical areas - Hong Kong and the People's Republic of China ("PRC") (excluding Hong Kong). The Group's revenue from end customers is divided into following geographical area and the Group's non-current assets by geographical location:
Revenue | Non-current assets | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
HK$'000 | HK$'000 | HK$'000 | HK$'000 | |||||||||||||||||||
Hong Kong | 6,387 | 11,232 | 24,124 | 31,170 | ||||||||||||||||||
The PRC | 53,937 | 82,672 | - | 1 | ||||||||||||||||||
Others | - | - | 4 | 10 | ||||||||||||||||||
60,324 | 93,904 | 24,128 | 31,181 | |||||||||||||||||||
Additions to | Amortisation and | |||||||||||||||||||||
Segment assets | Segment liabilities | non-current assets | depreciation | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | |||||||||||||||
Hong Kong | 447,616 | 499,404 | 21,546 | 31,869 | 27 | 171 | 7,028 | 7,034 | ||||||||||||||
The PRC | 5,647 | 4,653 | 7,395 | 37,692 | - | - | - | - | ||||||||||||||
Others | 435 | 36,049 | 569 | 976 | - | - | 6 | 6 | ||||||||||||||
453,698 | 540,106 | 29,510 | 70,537 | 27 | 171 | 7,034 | 7,040 | |||||||||||||||
Information about major customer
Revenue from major customer, accounted for the 10% or more of the Group's revenue, is set out below:
2020 | 2019 | ||
HK$'000 | HK$'000 | ||
Customer A | 41,184 | 43,496 | |
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5. LOSS FROM OPERATIONS
Loss from operations is stated after charging:
2020 | 2019 | |||||||||
HK$'000 | HK$'000 | |||||||||
Depreciation of property, plant and equipment | 388 | 394 | ||||||||
Cost of inventories sold | 43,485 | 72,943 | ||||||||
Amortisation of intangible assets | 6,646 | 6,646 | ||||||||
Loss on disposal of property, plant and equipment | 6 | 683 | ||||||||
Allowance for expected credit losses on trade receivables | 750 | 1,149 | ||||||||
Allowance for expected credit losses on deposits, | ||||||||||
prepayments and other receivables | 4,302 | 6,754 | ||||||||
Auditors' remuneration | ||||||||||
- Audit services | 620 | 800 | ||||||||
- Other services | - | 30 | ||||||||
Short term lease payment | 1,570 | 1,069 | ||||||||
Staff costs: | ||||||||||
- Share-based payment expenses | 10,165 | 23,514 | ||||||||
- Salaries and allowances, including directors' and | ||||||||||
chief executive officer's remuneration | 6,697 | 5,431 | ||||||||
- Retirement benefit schemes contribution | 308 | 372 | ||||||||
17,170 | 29,317 | |||||||||
6. | FINANCE COSTS | |||||||||
2020 | 2019 | |||||||||
HK$'000 | HK$'000 | |||||||||
Interest expense on convertible notes | - | 585 | ||||||||
Interest expense on other borrowings | 705 | 179 | ||||||||
Default interest expense on other borrowings | 194 | - | ||||||||
899 | 764 | |||||||||
7. | TAXATION | |||||||||
2020 | 2019 | |||||||||
HK$'000 | HK$'000 | |||||||||
Current tax: | ||||||||||
- Hong Kong | - | 109 | ||||||||
- The PRC | 1,364 | 857 | ||||||||
Reversal of temporary differences in the current year | (1,661) | (5,048) | ||||||||
(297) | (4,082) | |||||||||
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-
LOSS PER SHARE
The calculation of basic loss per share for the year is based on the Group's loss attributable to owners of the Company of approximately HK$41,800,000 (2019: HK$74,635,000) and weighted average number of ordinary shares in issue during the year ended 31 December 2020 of 2,743,729,744 (2019: 2,743,729,744).
The basic and diluted loss per share are the same for the years ended 31 December 2020 and 2019 as the effect of the share options does not have any dilutive effect (2019: share options and convertible notes outstanding were anti-dilutive). - DIVIDENDS
The directors of the Company do not recommend the payment of any dividend for the year ended 31 December 2020 (2019: Nil). - TRADE RECEIVABLES
An aged analysis of the trade receivables, arising from contracts with customers within the scope of IFRS 15 as at the end of the reporting period, based on the invoice date is as follows:
2020 | 2019 | |||
HK$'000 | HK$'000 | |||
0 to 30 days | 1,282 | 6,725 | ||
31 to 60 days | 1,477 | 4,528 | ||
61 to 90 days | 1,044 | 8,358 | ||
91 to 180 days | 3,283 | 18,729 | ||
Over 180 days | 4,204 | 4,489 | ||
11,290 | 42,829 | |||
Less: Allowance for expected credit losses | (2,514) | (1,764) | ||
8,776 | 41,065 | |||
The credit terms of trade receivables are generally on 30-180 days (2019: 30-180 days) during the year ended 31 December 2020.
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11. TRADE PAYABLES
An aged analysis of the trade payables as at the end of the reporting period, based on the invoice date is as follows:
2020 | 2019 | |||
HK$'000 | HK$'000 | |||
0 to 30 days | 43 | 3,633 | ||
31 to 60 days | - | 9,458 | ||
61 to 90 days | - | 7,076 | ||
Over 90 days | 1,260 | 4,630 | ||
1,303 | 24,797 | |||
The credit terms of trade payables are generally 0-60 days (2019: 0-60 days). |
12. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to conform with current year's presentation.
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MANAGEMENT DISCUSSION AND ANALYSIS
Business Review
"Internet and Mobile's Application and Related Accessories" is the Group's main business. The Group specialized in providing programming and advertising solutions in mobile platform with branch office in Hong Kong, Shenzhen and Shanghai. The programming teams of the Group have extensive experience on developing mobile application and interactive virtual reality technologies for well-known companies in Hong Kong and overseas. The Group is also engaged in the business of distribution of computer-related and mobile-related electronic products and accessories.
The Group believe that the business of "Internet and Mobile's Application and Related Accessories" as a key growth area, is in-line with the growth of the mobile and gaming industry and in particular in application development for merchants, online gaming, interactive virtual reality experience and utilities applications for mobile platform and mass advertising.
The Company already procured thousands of merchants to participate in its settlement application services. In order to capture its market share and procure sizable merchants, the Company would pay earnest deposits to these merchants. The Company would derive marketing plan with these merchants in order to give incentives by way of E-coupons or discounts to their customers who use our designated settlement application services and the earnest deposits would be utilized accordingly. In return, the Company would share the transaction fee from the settlement application services and receive rebate income from these merchants. Since 2018, the Group expanded its settlement application services through referring merchants to Alipay.com Co., Ltd. to use the Alipay services in the PRC.
In the financial year of 2020, the Group recorded a revenue of approximately HK$60.3 million, representing a decrease of 35.8% compared to the same period in 2019. The decrease was primarily due to the global outbreak of the novel coronavirus (COVID-19). The lock-down of different regions in the PRC during the first quarter of 2020 has adversely affected the customers of our merchants in the PRC and caused a significant decrease in the Group's revenue.
The Group reported a net loss of approximately HK$51.1 million for the year ended 31 December 2020. The decrease of net loss was mainly attributable to the decrease of selling and administrative expenses.
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Financial review
Revenue
The revenue of the Group was mainly attributable to the application development income generated by efforts in diversification into settlement application market. For the year ended 31 December 2020, the Group reported a total revenue of approximately HK$60.3 million representing a decrease of 35.8% compared to approximately HK$93.9 million in the same period in 2019.
Gross profit
Gross profit in 2020 was HK$14.1 million which was a decrease, as compared to a gross profit of HK$18.1 million in the same period of 2019.
Other revenue and gains
Other revenue and gains, mainly included a non-recurring gain on disposal of subsidiaries of approximately HK$9.6 million, increased by approximately HK$10.1 million to approximately HK$10.3 million.
Selling and administrative expenses
Selling and administrative expenses, mainly included the expenses on utilization of earnest deposits as incentives by giving E-coupons or discount to customers for settlement application services of approximately HK$38.1 million (2019: HK$40.0 million) and share-based payment expenses of approximxately HK$10.2 million (2019: HK$23.5 million), decreased by approximately HK$18.2 million from approximately HK$87.7 million in 2019 to approximately HK$69.5 million in the same period in 2020. The decrease was attributable to the decrease in share-based payment expenses by approximately HK$13.3 million.
Loss for the year
The Group's loss for the year was approximately HK$51.1 million compared to loss of approximately HK$75.7 million in the same period in 2019. The decrease of net loss was mainly attributable to the increase of other revenue and gains and the decrease of selling and administrative expenses.
Loss attributable to owners of the Company
Loss attributable to owners of the Company decreased from a loss of approximately HK$74.6 million in 2019 to a loss of approximately HK$41.8 million in the same period of 2020.
Loss attributable to the non-controlling interests
The loss attributable to the non-controlling interests of approximately HK$9.3 million for the year ended 31 December 2020 (2019: HK$1.1 million).
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Review of the Group's financial position
Liquidity and capital resources
The Group has internal budgeting systems in place to ensure that if and when cash is committed to fund major expenditures there is sufficient cash flow to maintain the Group's daily operations and meet all of its contractual obligations.
The Group funds its operations with revenue from its operating activities. The Group also has cash inflows from interest income and collections. Key drivers in the Group's sources of cash are primarily the Group's sales, and their inflow depends on the Group's ability to collect payments. There have been no material changes in the Group's underlying drivers during the period under review.
The Group did not incur any capital expenditure during the year of 2020 (2019: HK$Nil).
There were no assets charged or pledged as at 31 December 2020 (2019: HK$ Nil).
The Group had cash and cash equivalents of approximately HK$4.8 million as at 31 December 2020 compared to approximately HK$8.2 million as at 31 December 2019.
Capital commitments
The Group had no capital commitments as at 31 December 2020 (2019: Nil).
Gearing ratio
As at 31 December 2020, the Group's gearing ratio was approximately 7.0%, as compared to 15.4% as at 31 December 2019. The gearing ratio was calculated as the Group's total liabilities divided by its total capital. The total liabilities and total capital of the Group were approximately HK$29.5 million (2019: HK$70.5 million) and HK$422.5 million (2019: HK$458.6 million) as at 31 December 2020.
Contingent Liabilities
As at 31 December 2020, the Group had no contingent liabilities (2019: Nil). The Company has not been acted as a guarantor of its subsidiaries to secure any interest-bearing borrowings.
Foreign exchange risk management
Certain of the Group's bank balances are denominated in Ringgit, United States Dollars and Renminbi, each of which is a currency other than the functional currency of the relevant group entities, which exposes it to foreign currency risk. The Group has not used any financial instruments to hedge against this currency risk. However, the Group monitors foreign exchange exposure and will consider hedging significant foreign currency exposure should the need arise.
15
MANAGEMENT OUTLOOK
The Group had continued the efforts to consolidate and realign its businesses to enable the Group to achieve improvements in its financial position. The Group will utilise its existing technical knowledge and programmers to diversify its income stream and will continue to work towards, attaining a stable platform for sustainability and basis for any potential growth.
By leveraging the knowledge on its interactive virtual reality programming on different business sectors, such as animation and culture, the Group obtained the license from the largest Japanese animation studio to conduct an interactive animation exhibition in Hong Kong in 2019. The Group will continue to explore the potential of this business opportunities and utilize its resource with prudence in the future.
Furthermore, the outbreak of COVID-19 has cast a confronting shadow over the growth prospects for the PRC. Although the PRC government is doing very well with combinations of fiscal and monetary policies in their stimulus package, the Board expects that financial results and the operations of the Group during 2021 will still be impacted. While it remains uncertain as to when the COVID-19 epidemic might end and the PRC economy might fully recover, the Board will continue to monitor and assess the situation with respect to COVID-19, and remains committed to mitigate any adverse risk or impact COVID-19 may have on the operating and financial performance of its business in the PRC.
HUMAN RESOURCES
As at 31 December 2020, in addition to the Directors, there were approximately 53 employees (31 December 2019: 56) of the Group stationed in the Group's offices in Hong Kong, Shanghai, Shenzhen, Beijing and Kuala Lumpur. Total staff costs for the year ended 31 December 2020 were approximately HK$17.2 million (which included share-based payment of approximately HK$10.2 million), compared with approximately HK$29.3 million in 2019.
The Group offers training and development courses for its employees to enhance the staff's working capabilities. Remuneration packages are linked to individual performance, the Group's business performance, and taking into consideration of the industry practices and market conditions, reviewed on an annual basis. Directors' remuneration is determined with reference to his duties and responsibilities with the Company, the Company's standards for emoluments and market conditions. Share options are also granted to eligible employees based on individual's performance as well as the Group's performance.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES
The total number of issued share capital of the Company as at 31 December 2020 was 2,743,729,744 ordinary shares.
Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the year ended 31 December 2020.
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SIGNIFICANT INVESTMENTS
As at 31 December 2020, the Group did not hold any significant investments.
DIVIDEND
The Board maintains a cautious view and, having regarded to the requirement to retain cash, has decided not to recommend a dividend in respect of the year ended 31 December 2020.
SCOPE OF WORK OF MCMILLAN WOODS (HONG KONG) CPA LIMITED
The figures in respect of the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income and the related notes thereto for the year ended 31 December 2020 of the Group as set out in the preliminary announcement have been agreed by the Company's auditor, McMillan Woods (Hong Kong) CPA Limited, to the amounts set out in the Group's audited consolidated financial statements for the year. The work performed by McMillan Woods (Hong Kong) CPA Limited in this respect did not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants and consequently no assurance has been expressed by McMillan Woods (Hong Kong) CPA Limited on the preliminary announcement.
REVIEW BY AUDIT COMMITTEE
The Company established an audit committee (the "Audit Committee") on 28 June 2004 with written terms of reference, which was revised on 18 December 2015, in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The Audit Committee is comprised of three members, namely Mr. Kwan King Wah as chairman with Mr. Cheng Ruixiong and Ms. Lo Suet Lai, both independent non-executive Directors as members. The arrangement of the Audit Committee complied with the Rule 3.21 of the Listing Rules.
The Audit Committee has reviewed with the management and the Company's independent external auditors, McMillan Woods (Hong Kong) CPA Limited, the accounting principles and practices adopted by the Group and discussed auditing, risk management, internal control and financial reporting systems including the review of the consolidated financial statements for the year ended 31 December 2020, which have been audited by McMillan Woods (Hong Kong) CPA Limited.
CORPORATE GOVERNANCE CODE
In connection with the listing of the Company on the Stock Exchange in February 2009, the Company adopted the code provisions set out in the Corporate Governance Code and Corporate Governance Report (the "CG Code") contained in Appendix 14 to the Listing Rules as its additional code on corporate governance practices on 2 February 2009. The Company has complied with the code provisions set out in the CG Code throughout the year ended 31 December 2020.
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COMPLIANCE WITH THE MODEL CODE
The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix 10 to the Listing Rules. All Directors have confirmed, following specific enquiry by the Company, that they have fully complied with the Model Code throughout the year ended 31 December 2020.
PUBLICATION OF RESULTS ANNOUNCEMENT AND ANNUAL REPORT
This announcement is published on the websites of The Stock Exchange of Hong Kong Limited and the webpage of the Company (www.hklistco.com/802), respectively. The annual report 2020 will also be published on the aforesaid websites in due course.
By Order of the Board of
China e-Wallet Payment Group Limited
Li Jinglong
Executive Director
Hong Kong, 31 March 2021
As at the date of this announcement, the Board comprises the following Directors:
Executive Directors:
Li Jinglong
Zhang Ligong
Wang Zhongling
Independent Non-executive Directors:
Cheng Ruixiong
Kwan King Wah
Lo Suet Lai
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China e-Wallet Payment Group Limited published this content on 31 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2021 16:04:07 UTC.