(SEHK Stock Code: 0030.HK)

ENG | 中文

About Us

Investor Relations

To Shareholders

Contact Us

Back to Home

Business Area

The Group’s operations are divided into three identifiable business segments, namely, the money lending segment, the trading segment and the mining segment. The money lending segment refers to the money lending business engaged in Hong Kong by Ban Loong Finance Company Limited (“Ban Loong Finance”), a wholly-owned subsidiary of the Company which is a licensed money lender in Hong Kong. The trading segment refers to (i) the trading of goods and commodities in China by Wan Long Xing Ye Commercial Trading (Shenzhen) Limited (萬隆興業商貿(深圳)有限公司) (“Wan Long Xing Ye”), a wholly-owned subsidiary of the Company and (ii) the trading of goods and commodities in Hong Kong by Wan Long Xing Ye Commercial Trading (Hong Kong) Limited (“Wan Long Xing Ye HK”), a wholly-owned subsidiary of the Company. The mining operations segment refers to the exploration and exploitation of mineral resources in China conducted by the Jun Qiao Group, which was de-consolidated during the year ended 31 March 2017.

MONEY LENDING SEGMENT

Ban Loong Finance is a money lender licensed to carry out money lending business in Hong Kong. Its business primarily focuses in the area of short-term personal and corporate loans. To maintain credit control efficiency, Ban Loong Finance does not currently conduct business at retail level. Potential borrowers were sought from the social and business networks of the management and marketing team. To safeguard assets of the Group, the management and credit control team will review and assess the credit risk of each loan application carefully to ensure recoverability of each lending. The management will then conduct background check on borrowers, including, where necessary, obtaining credit reports issued by independent credit rating agent and examining borrowers’ assets backing.

Depending on the result of the cost and benefit analysis, Ban Loong Finance may request some borrowers to provide security and/or guarantee to fortify their loans. Generally speaking, borrowers would be requested to pay interest monthly, in order to facilitate the management’s continual monitoring of the financial stability of borrowers.

During and subsequent to the year ended 31 March 2019, the money lending business of the Group continued to contribute a constant cash inflow to the Group.

As disclosed in the Company’s announcement dated 27 September 2018, the Company responded to the changes in interest rate and monetary policy by fine-tuning its development pace of the money lending business. The Company will continue to take a pragmatic approach in its money lending business to adapt to the market environment and the money supply market and to counteract market challenges from time to time. The management expected the money lending segment will still be one of the major revenue and profit contributors of the Group in the coming years.

TRADING SEGMENT

Wan Long Xing Ye carried out trading of goods and commodities business in China. During the year ended 31 March 2019, Wan Long Xing Ye was principally engaged in the trading of refined edible oil and sugar. During the year ended 31 March 2019, the Group’s trading business in China generated revenue of approximately HK$773.9 million (2017/2018: HK$714.4 million), with trading of 103,130 tonnages (2017/2018: 121,043 tonnages) of refined edible oil and 28,209 tonnages (2017/2018: nil) of sugar being completed.

Wan Long Xing Ye HK carried out trading of goods and commodities business in Hong Kong. During the year ended 31 March 2019, Wan Long Xing Ye HK was principally engaged in the trading of cosmetic products and personal care products. During the year ended 31 March 2019, the Group’s trading business in Hong Kong generated revenue of approximately HK$62.1 million (2017/2018: HK$6.5 million), with trading of 379,877 units (2017/2018: 36,674) of cosmetic products and 112,926 units (2017/2018: nil) of personal care products being completed.

During the year ended 31 March 2019, the trading segment of the Group successfully diversified its trading goods categories from refined edible oil and cosmetic products to sugar and personal care products. As disclosed in the Company’s announcements dated 10 May 2019, Wan Long Xing Ye HK entered into a supply agreement with Yunnan Baiyao Group Yunfeng Import & Export Group Co., Ltd (an indirect wholly-owned subsidiary of Yunnan Baiyao Group Co., Ltd) regarding the supply of plant extracts and the provision of ancillary testing, logistics, import and export and related services as part of the Group’s ordinary and usual course of business.

The management will continue its plan to increase the size of trading volume with a view to achieve economy of scale and improve the gross profit margin. The segment is expected to remain as the main revenue contributor of the Group in the coming years.