Corporate Governance - The board of directors discussed the overall strategy, annual and interim performance, internal controls, corporate governance, capital, financial matters, and acquisitions for the year ending December 31, 2023[2]. - The remuneration committee reviewed the compensation of executive directors and senior management, ensuring compliance with corporate governance codes[15]. - The audit committee consists of four independent non-executive directors, ensuring independent oversight of financial reporting and compliance[22]. - The company secretary has undergone professional training as required by listing rules, ensuring compliance with governance standards[25]. - The board of directors is responsible for appointing and reappointing directors, ensuring they possess relevant expertise and contribute to the company's decision-making process[32]. - The nomination committee is tasked with recommending candidates for board appointments, considering their achievements and experience in relevant industries[20]. - The board of directors held eight meetings during the review year to discuss overall strategy, operational and financial performance, and approve annual and interim reports[43]. - The board consists of executive, non-executive, and independent directors, ensuring a balanced skill set and expertise to support sustainable development[101]. - The board of directors and senior management play a crucial role in the risk management and internal control compliance system, with regular meetings to monitor business risks and review financial data[107]. - The board is responsible for setting strategic guidance and overseeing business performance, with qualified management handling daily operations[131]. ESG Commitment - The company is committed to enhancing transparency and promoting investor relations, valuing shareholder feedback[34]. - The ESG report covers the financial year from January 1, 2023, to December 31, 2023, focusing on key performance indicators related to environmental, social, and governance aspects[37]. - The company will continue to review other potential ESG aspects to determine their inclusion in future reports[38]. - The company emphasizes the importance of integrating ESG risk management into its business strategy to ensure long-term sustainable development[40]. - A cross-departmental working group has been established to identify significant ESG issues and monitor business performance based on ESG indicators and initiatives[40]. - The company aims to maintain consistency in its ESG reporting methodology compared to the previous year for comparability[39]. - The company has established a governance structure to enhance the management of ESG matters, with a working group formed by senior management to support the board in executing ESG strategies and objectives[76]. - The company has identified 13 sustainability issues based on stakeholder feedback, categorizing them into six groups, including environmental protection and compliance[98]. - The board is committed to ensuring the accuracy of the ESG report, preventing false statements or significant omissions, and will continue to review progress against set goals[78]. - The company is committed to sustainable development and has released an ESG report detailing its strategies and overall ESG performance[63]. Risk Management and Compliance - The company emphasizes the importance of compliance and risk management as the foundation for healthy development, continuously strengthening compliance management and internal control mechanisms[75]. - The audit committee is responsible for reviewing the financial statements and monitoring the financial reporting, risk management, and internal control systems[48]. - The company maintains a robust risk management framework, with clear responsibilities for risk identification, assessment, monitoring, and reporting[82]. - The group has established an internal control system to ensure compliance and mitigate risks, emphasizing the importance of a standardized business process to prevent legal liabilities and regulatory penalties[105]. - The group has implemented internal supervision mechanisms and anonymous reporting channels to enhance compliance operations and prevent corruption[86]. - The group has implemented anti-corruption training for employees and management to enhance integrity and improve supervision mechanisms, aiming to foster a clean corporate culture[110]. - The company has implemented anti-money laundering policies and training for employees to mitigate risks associated with high credit risk transactions[133]. - The company is committed to enhancing its anti-money laundering practices and regularly trains employees to raise awareness and skills[138]. - During the reporting period, there were no lawsuits against the group or its employees related to corruption, bribery, or money laundering[164]. Stakeholder Engagement - The company engages with various stakeholders, including customers, government, suppliers, and the community, to promote transparency and corporate social responsibility[69]. - The company believes that stakeholder engagement is crucial for business success and actively seeks opportunities to improve products and services based on stakeholder insights[93]. - The company has adopted a shareholder communication policy to provide clear and comprehensive performance information through interim and annual reports[60]. Employee Welfare and Development - The company provides diverse training programs for employees to enhance their job competencies, with a commitment to employee welfare and development[145]. - The employee turnover rate during the reporting period is not specified, but the company offers various benefits to maintain a comfortable work environment[160]. - The company strictly adheres to labor laws and regulations, ensuring no child or forced labor is employed[150]. - The employee demographics show a total of 31 employees, with 14 males and 17 females, and the majority (23) aged between 31-51 years[153]. - The group provided training for 24 employees, totaling 254 hours, with an average training time of 8.19 hours per employee, representing 77% of the workforce[174]. - The group has a 100% coverage rate for social insurance for all contract employees[176]. Environmental Impact - The total greenhouse gas emissions increased to 42.35 tons of CO2 equivalent, with a density of 1.57 tons of CO2 equivalent per person, down from 2.02 in the previous year[191][193]. - The group aims to maintain its greenhouse gas emissions density at 90% to 120% of the baseline level by the end of the next reporting period[193]. - The total amount of paper waste increased to 165.73 kg in 2023 from 118.13 kg in 2022[197]. - The total density of harmless waste per person decreased to 6.14 kg in 2023 from 6.56 kg in 2022[197]. - The company is committed to energy conservation through various measures aimed at reducing energy consumption in the long term[200]. - The group has prioritized suppliers with environmental certifications, such as ISO 14001, in its procurement process[185]. Customer Relations - The company emphasizes a customer-centric service philosophy, focusing on customer needs and privacy protection[140]. - The group has adopted strict customer service standards to prevent false advertising and deceptive practices, ensuring regular communication with clients to assess their business needs[127]. - There were no confirmed incidents of customer information leakage during the reporting period[167]. - The group has not received any customer complaints regarding its products and services during the reporting period[169].

Financial Performance - Revenue for 2023 reached RMB 82,024 thousand, a 2.25% increase from RMB 80,219 thousand in 2022[2] - Operating profit for 2023 was RMB 46,084 thousand, compared to RMB 54,508 thousand in 2022, reflecting a decrease of 15.5%[2] - Net profit for the year was RMB 36,997 thousand, a significant recovery from a loss of RMB 5,638 thousand in 2022[2] - Basic earnings per share for 2023 was RMB 1.37, compared to a loss of RMB 0.21 per share in 2022[2] - The company reported a total of RMB 51,880 thousand in comprehensive income for 2023, down from RMB 80,267 thousand in 2022[3] - The company recorded a profit before tax of RMB 46,100,000, an increase of RMB 42,600,000 compared to the previous year's profit before tax of RMB 3,500,000[54] - The company recorded a net profit after tax of RMB 37,000,000 for the year, compared to a net loss after tax of RMB 5,600,000 in the previous year[54] - The company reported a pre-tax profit of RMB 4,901,000 for the year 2023, a significant decrease from RMB 30,238,000 in 2022[179] Assets and Liabilities - Total current assets decreased to RMB 1,330,673 thousand in 2023 from RMB 1,664,091 thousand in 2022, a decline of 20.0%[4] - Total assets minus current liabilities increased to RMB 1,684,195 thousand in 2023 from RMB 1,632,880 thousand in 2022, an increase of 3.2%[4] - As of December 31, 2023, total assets were valued at RMB 1,702,206,000, with allocated assets of RMB 1,242,059,000[173] - The asset-to-liability ratio was 0.38% as of December 31, 2023, a significant decrease from 24.10% a year prior, due to the repayment of all bank loans[95] - The total liabilities for the year included no lease liabilities, indicating a potential reduction in financial obligations[188] Revenue Segments - The business factoring segment contributed 92% of the company's total revenue for the year, emphasizing its importance as the main income source[30] - Revenue from commercial factoring business increased to RMB 75.8 million in 2023, up from RMB 70.1 million in 2022[40] - Other financial services revenue decreased from RMB 10.1 million in 2022 to RMB 6.2 million in 2023, due to restrictions on app content in some mobile application stores[40] - The company's financial services segment generated RMB 238,000 in revenue for the year 2023[173] Credit and Loans - Trade receivables and loans receivable increased to RMB 1,043,488 thousand in 2023 from RMB 921,235 thousand in 2022, marking a growth of 13.3%[4] - The expected credit loss provision was RMB 3,400,000, significantly lower than the previous year's provision of RMB 43,000[55] - The expected credit loss provision for accounts receivable was RMB 11,473 million as of December 31, 2023, compared to RMB 8,068 million in the previous year[152] - The non-performing loan ratio remained at 0%, with no provisions required for bad debts[76] Operational Efficiency - The company has focused on improving the quality of commercial factoring clients, resulting in a decrease in the number of clients but an increase in loan scale[40] - The company has implemented strict risk control measures for new loans and accounts receivable, resulting in no new overdue items during the year[62] - The company maintained stable interest rates charged to commercial factoring borrowers[40] Strategic Initiatives - The company plans to continue expanding its financial services in China, focusing on commercial insurance and other financial services[12] - The company is actively seeking additional opportunities to increase revenue, particularly in the gaming industry, and is progressing with the proposed acquisition of CashBox[34] - The company is exploring the acquisition of CashBox, which is expected to leverage its extensive user base and enhance business diversification[93] - The company is actively pursuing the acquisition of Tianjin Guanchuang, with a payment of RMB 576,000,000 made as a prepayment, which has been classified as a non-current asset since 2019[114] Economic Environment - The overall economic environment remains challenging, but China's GDP exceeded RMB 126 trillion in 2023, with a year-on-year growth of 5.2%[32] - The People's Bank of China maintained the 1-year LPR at 3.45% and reduced the 5-year LPR by 25 basis points to 3.95%, indicating a more accommodative financing environment[119] - The International Monetary Fund (IMF) projected global growth of 3.1% for 2024, an improvement from 2023, driven by stronger-than-expected resilience in the US and some large emerging markets[118] Governance and Compliance - The company has established an audit committee to review and supervise financial reporting procedures and risk management[140] - The company has complied with the corporate governance code, although it has not strictly adhered to certain provisions due to the absence of a chairman as of December 31, 2023[105] - The company confirmed that all directors have complied with the standards for securities trading as of December 31, 2023[106] Employment and Staff - As of December 31, 2023, the group employed 31 staff, an increase from 22 staff in the previous year, and complied with applicable social insurance regulations[129]

Revenue and Profitability - The company's revenue for the six months ended June 30, 2023, slightly increased to RMB 39,600,000 from RMB 39,400,000 for the same period in 2022, with commercial factoring contributing approximately 92% of total revenue[20] - The income from commercial factoring business slightly increased to RMB 36,600,000 from RMB 34,900,000 in 2022, demonstrating stable performance despite external challenges[25] - The company recorded a profit of RMB 32,900,000 for the period, up from RMB 30,700,000 in 2022, highlighting consistent profitability in its core business[25] - The total income for the group increased by 0.33% to RMB 39,600,000 compared to RMB 39,400,000 in the previous year[54] - The company reported a total comprehensive income of RMB 29,984,000 for the six months ended June 30, 2023, compared to a loss of RMB 2,229,000 in the same period of the previous year[132] Credit and Risk Management - The expected credit loss provision for the period was RMB 2,400,000, compared to a reversal of RMB 1,800,000 in 2022, reflecting a cautious approach to risk management[27] - The company has no overdue loans and maintains a credit loss provision ratio below 1% of the factoring business's end-of-period balance, reflecting effective risk management[27] - The expected credit loss provision for the commercial factoring business, which accounts for nearly 92% of the company's revenue, was RMB 2,400,000 during the interim period[86] - The company reported a non-performing loan ratio of 0% as of June 30, 2023, with a provision coverage ratio maintained at over 100%[62] - The company reported no overdue receivables as of June 30, 2023, indicating effective credit management[197] Loan and Asset Management - The average loan balance during the period increased to RMB 978,000,000 from RMB 843,000,000 in 2022, indicating growth in the scale of commercial factoring operations[25] - The balance of inclusive micro-loans reached RMB 27.7 trillion by the end of June 2023, representing a year-on-year growth of 26%[23] - The number of inclusive micro-loan credit customers increased by 13.3% year-on-year to 59.35 million[23] - As of June 30, 2023, the total balance of ordinary loans increased significantly to RMB 1,045,216,000, compared to RMB 929,281,000 as of December 31, 2022, reflecting a growth of approximately 12.5%[83] - The company's trade receivables as of June 30, 2023, were RMB 1,034,764,000, reflecting an increase from RMB 921,213,000 as of December 31, 2022[179] Financial Costs and Income - The bank interest income for the period decreased to RMB 5,200,000 from RMB 7,100,000 in 2022, while financial costs dropped significantly to RMB 4,600,000 from RMB 15,700,000[28] - The company incurred interest expenses of RMB 4,572,000 for the six months ended June 30, 2023, down from RMB 15,666,000 in the same period of the previous year[172] - The total tax expense for the period was RMB 5,735,000, compared to RMB 4,753,000 for the same period last year[173] Operational Efficiency - Operating profit for the same period was RMB 35,260,000, up from RMB 28,940,000, reflecting a significant improvement in operational efficiency[57] - The operating costs of other financial services decreased significantly by RMB 600,000, primarily due to a reduction in labor costs[84] - The liquidity ratio as of June 30, 2023, was 6.65, up from 4.1 as of December 31, 2022, indicating improved liquidity[99] - The debt-to-equity ratio as of June 30, 2023, was 13.3%, down from 24.1% as of December 31, 2022, showing a reduction in leverage[99] Business Strategy and Future Outlook - The company aims to maintain a stable growth strategy while exploring new business opportunities to enhance overall performance[21] - The company is actively seeking to expand its business in technology and the internet to avoid limitations from its current business model[70] - The company plans to continue supporting small and micro enterprises through financial initiatives as outlined in recent government policies[69] - The company aims to continue exploring the integration of emerging technologies with supply chain finance, enhancing its product and service matrix to support the real economy[96] Cash Flow and Investments - Cash outflow from operating activities was RMB 122,100,000 for the period, significantly higher than RMB 4,800,000 in the same period last year, primarily due to an increase in trade receivables and loans[71] - The company recorded a cash inflow from investing activities of RMB 190,200,000, primarily due to the release of pledged bank deposits after repaying bank loans[71] - The net cash from investing activities for the six months ended June 30, 2023, was RMB 190,217 thousand, a turnaround from RMB (3,489) thousand in the same period of 2022[135] Liabilities and Equity - The company’s total liabilities as of June 30, 2023, were RMB 840,517 thousand, compared to RMB 403,644 thousand as of June 30, 2022, indicating a significant increase in liabilities[148] - The company’s total equity increased to RMB 1,662,298,000 as of June 30, 2023, from RMB 1,632,314,000 as of December 31, 2022, marking a growth of 1.8%[130] - The company reported a basic loss per share of RMB (0.826) for the six months ended June 30, 2023, compared to a profit per share of RMB 1.012 for the same period in 2022[158] Foreign Exchange and Other Gains - The group experienced a foreign exchange loss of RMB 24,400,000 during the interim period, compared to a foreign exchange gain of RMB 6,000,000 in the previous year[55] - The impact of foreign exchange fluctuations resulted in a gain of RMB 26,690 thousand for the six months ended June 30, 2023, compared to a gain of RMB 651 thousand in the same period of 2022[135] - The company reported a foreign exchange gain of RMB 6,011,000 during the period[165]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 國 美 金 融 科 技 有 限 公 司 Gome Finance Technology Co., Ltd. （於百慕達註冊成立之有限公司） （股份代號：628） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 佈 國美金融科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月 期間之未經審核簡明綜合業績連同比較數字與二零二二年相應期間相比， 簡明綜合中期業績乃未經審核，惟已經本公司審核委員會（「審核委員會」） 審閱。 摘要 截至二零二二年及二零二三年六月三十日止六個月的收入維持穩定， 分 別 為 人 民 幣39,400,000元 及 人 民 幣39,600,000元。截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 經 營 溢 利 下 降87.7%至 人 民 幣3 ...

Financial Performance - For the year ended December 31, 2022, the company recorded a revenue of RMB 80,200,000, a slight increase from RMB 77,400,000 in 2021[11] - The company achieved a pre-tax profit of RMB 3,500,000 after accounting for an impairment loss of RMB 51,000,000 related to the acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd[11] - The operating profit increased to RMB 54,500,000 from RMB 33,500,000 in the previous year, driven by an increase in other income and a reduction in administrative expenses[11] - The company reported a net loss of RMB 5,600,000 for the year, significantly improved from a loss of RMB 128,000,000 in 2021[11] - The overall economic environment in China showed stability, with a GDP growth of 3.0% in 2022, despite challenges from the COVID-19 pandemic[5] Revenue Sources - The commercial factoring business contributed approximately 87% of the company's total revenue for the year[12] - Profit from the commercial factoring business rose to RMB 58,400,000 in 2022, up from RMB 48,900,000 in 2021[12] - The company's commercial factoring service maintained stable revenue at RMB 70,100,000 in 2022, compared to RMB 69,900,000 in 2021[26] - Other financial services revenue surged to RMB 10,100,000 in 2022, a significant increase from RMB 6,600,000 in 2021, attributed to the stabilization of the regulatory environment and the launch of new products[26] - Other financial services saw a substantial increase in segment profit to RMB 5,900,000 in 2022, compared to RMB 1,200,000 in 2021[12] Loan and Credit Management - The company reported a reduction in non-performing loan ratio to 0% in 2022, down from 0.76% in 2021, reflecting improved risk management and credit control[26] - The total new loans issued decreased slightly from RMB 2,050,000,000 in 2021 to RMB 1,960,000,000 in 2022, indicating a cautious approach to lending[21] - The expected credit loss provision for trade receivables and loans decreased to RMB 12,000 in 2022, down RMB 5,000,000 from the previous year[26] - The provision ratio (impairment provisions as a percentage of total loan balance) significantly dropped to 1.05% in 2022 from 1.71% in 2021[42] - The non-performing loan ratio was 0.00% in 2022, down from 0.76% in 2021, with no substandard, doubtful, or loss loans reported[43] Operational Efficiency - The group's administrative expenses decreased by RMB 3,600,000, primarily due to a reduction in employee costs of RMB 3,200,000, with the number of employees decreasing from 25 to 22[27] - The group recorded a foreign exchange gain of RMB 10,000,000 in 2022, compared to a loss of RMB 300,000 in 2021, significantly increasing other income and gains[27] - The operating cash outflow for the year ended December 31, 2022, was RMB 21,300,000, an improvement from RMB 52,400,000 in 2021[61] - The group recorded an investment cash inflow of RMB 585,600,000 for the year ended December 31, 2022, compared to an outflow of RMB 60,300,000 in 2021[61] - The average loan balance for the commercial factoring business remained stable at approximately RMB 890,000,000 for both 2022 and 2021[21] Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[150] - The board of directors consists of six members, including four independent non-executive directors, ensuring over one-third independence[169] - The board has established four committees, including the remuneration committee, nomination committee, and audit committee, with defined responsibilities[193] - Independent directors have confirmed their independence in accordance with listing rules, ensuring compliance with governance standards[169] - The company reviews its compliance with legal and regulatory requirements as part of its corporate governance policies[190] Employee and Compensation Policies - The group had a total of 22 employees as of December 31, 2022, down from 25 employees as of December 31, 2021[74] - The overall purpose of the employee and compensation policy is to retain and motivate employees for the group's continued success[74] - The remuneration policy for directors is based on the company's performance and individual contributions[148] - The company provides monthly updates to all directors regarding performance and outlook, facilitating informed decision-making[183] - Continuous professional development training is provided to directors to help them fulfill their responsibilities effectively[186] Future Outlook and Strategy - The company aims to become a leading integrated financial technology service group, focusing on the development of new business opportunities[13] - The company plans to continue expanding its business revenue sources by diversifying its product and service offerings[6] - The group plans to continue exploring the integration of emerging technologies with supply chain finance to enhance its service offerings[58] - Management remains committed to expanding various business types, including e-commerce platforms and online retail operations, to enhance overall company value[58] - The company anticipates completing the acquisition by the end of 2023, pending regulatory approval from the People's Bank of China[50]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 國 美 金 融 科 技 有 限 公 司 Gome Finance Technology Co., Ltd. （於百慕達註冊成立之有限公司） （股份代號：628） 截至二零二二年十二月三十一日止 年度業績公佈 國美金融科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜 合業績連同比較數字，本公司審核委員會（「審核委員會」）已審閱綜合業績。 綜合損益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 收入 5 80,219 77,401 其他收入以及其他收益及虧損 5 25,121 18,039 行政開支 (20,582) (24,188) 應收貿易賬款及應收貸款預期信貸損失 （「預期信貸損失」）撥備計提淨額 (12) (5,061) 財務成本 7 (30,238) ( ...

Financial Performance - For the six months ended June 30, 2022, Gome Finance Technology reported a profit before tax of RMB 7,500,000, down from RMB 12,800,000 in the same period last year, primarily due to an impairment loss of RMB 21,000,000 related to the acquisition of Tianjin Guanchuang[7]. - The group's revenue slightly increased from RMB 37,000,000 in the previous year to RMB 39,400,000, driven by an increase in financial information service revenue of RMB 2,500,000[7]. - The operating profit for the period was RMB 28,500,000, compared to RMB 12,800,000 in the previous year, with a foreign exchange gain of RMB 6,000,000 compared to a loss of RMB 4,800,000 last year[7]. - The company achieved a profit of RMB 2,700,000 attributable to owners, down from RMB 8,900,000 in the previous year, impacted by the impairment loss[26]. - The total comprehensive income for the period was RMB 45,243,000, compared to RMB 4,416,000 in the previous year, indicating a significant improvement[95]. Revenue Sources - The commercial factoring business contributed approximately 90% of the group's total revenue during the period, ensuring stable returns despite the impact of COVID-19 on the economy[8]. - Other financial services turned a profit of RMB 2,300,000 during the period, compared to a loss of RMB 61,000 in the previous year, benefiting from improved market conditions[8]. - The company's revenue increased by 7% to RMB 39,400,000 during the interim period, compared to RMB 37,000,000 in the previous year, primarily due to an increase in other financial services revenue[23]. - Revenue from other financial services reached RMB 4.495 million for the six months ended June 30, 2022, representing a 56% increase compared to RMB 2.876 million for the same period in 2021[32]. - The commercial factoring business recorded a slight revenue increase of 2% to RMB 34,931,000, up from RMB 34,134,000, attributed to extended loan terms for quality clients[26]. Loan and Credit Management - The company reported a significant reduction in the non-performing loan ratio to 0.7%, leading to a reversal of expected credit losses amounting to RMB 1,800,000 during the interim period[23]. - The company recorded an expected credit loss provision of RMB 1,800,000, up from RMB 1,000,000 in the previous year, reflecting high levels of risk management in new loans and receivables[8]. - The non-performing loan ratio dropped significantly to 0.72% as of June 30, 2022, down from 4.21% as of June 30, 2021[38]. - The provision coverage ratio increased to 198.5% as of June 30, 2022, compared to 110.09% as of June 30, 2021, indicating strong coverage of non-performing loans[38]. - The expected credit loss provision for trade receivables and loans was RMB 12,734,000 as of June 30, 2022, compared to RMB 14,487,000 as of December 31, 2021[179]. Acquisition of Tianjin Guanchuang - The company aims to continue its strategic development through the acquisition of Tianjin Guanchuang, which is considered a key element for future growth[22]. - The company is awaiting regulatory approval from the People's Bank of China for the acquisition of Tianjin Guanchuang, with a prepayment of RMB 576 million already made[43]. - The company anticipates completing the acquisition by the end of 2022, barring unforeseen circumstances[44]. - The company is considering terminating the equity transfer agreement due to the suspension of approval procedures by the People's Bank of China, which is a critical condition for the acquisition[192]. - If the acquisition is not completed by the end of 2022, the company will notify the seller to terminate the transaction and seek a refund of the prepaid amount[195]. Operational Efficiency - The company experienced a decrease in administrative expenses by RMB 2,300,000, mainly due to a reduction in employee costs, which fell by RMB 1,900,000 as the workforce was reduced from 34 to 22 employees[24]. - The overall operating expenses for other financial services decreased significantly, primarily due to a reduction in employee costs[33]. - The company reported a decrease in employee benefits expenses, totaling RMB 4,505,000 compared to RMB 6,388,000 in the previous period, reflecting a reduction of approximately 29.5%[165]. - The company employed 22 staff members as of June 30, 2022, down from 34 employees as of December 31, 2021[89]. Economic Context - The Chinese economy showed signs of stabilization with a GDP of RMB 56,264.2 billion for the period, growing by 2.5% year-on-year[13]. - The balance of inclusive micro loans in China increased by 23.8% year-on-year, significantly outpacing the growth of other loan categories[13]. Future Outlook - The company aims to explore new business opportunities to achieve growth and develop into a leading integrated financial technology service group[9]. - The group plans to continue expanding its business into e-commerce and online retail operations, aiming to enhance its overall value[66]. - The group aims to leverage technology finance as a strategic focus, exploring the integration of the metaverse with supply chain finance[65]. - The group will continue to diversify its product and service offerings to provide specialized financial services while ensuring stable returns for shareholders[65].

Financial Performance - For the year ended December 31, 2021, the company recorded a pre-tax loss of RMB 123.5 million, compared to a profit of RMB 22.6 million in 2020, primarily due to a significant impairment loss of RMB 157 million related to the acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd.[10] - The company's operating income decreased from RMB 86.7 million in 2020 to RMB 77.4 million in 2021, attributed to the suspension of financing leasing business, yet operating profit improved to RMB 33.5 million when excluding the impairment loss[10] - The group reported a loss attributable to owners of RMB 128,000,000 in 2021, compared to a profit of RMB 14,300,000 in 2020[30] - The group recorded a cash outflow from operating activities of RMB 52,400,000 for the year ended December 31, 2021, compared to an inflow of RMB 79,100,000 in 2020[74] - The total revenue for the year ended December 31, 2021, was RMB 9,054,000, a decrease from RMB 9,100,000 in 2020[41] Revenue Sources - The commercial factoring business contributed over 90% of the company's total revenue for the year ended December 31, 2021, with new loans increasing from RMB 1.8 billion in 2019 to RMB 2 billion in 2021[11] - The income from the commercial factoring business was RMB 69.9 million in 2021, a slight decrease of 0.3% compared to RMB 70.1 million in 2020[26] - Revenue from other financial services was RMB 7,529,000 in 2021, slightly up from RMB 7,469,000 in 2020, with operating profit decreasing to RMB 1,061,000 from RMB 2,154,000[44] Impairment and Credit Losses - The expected credit loss provisions for trade receivables and loans decreased by RMB 17.3 million and RMB 4.6 million, respectively, indicating improved risk management and credit control[10] - The expected credit loss provision for receivables decreased significantly to RMB 5,200,000 in 2021 from RMB 17,300,000 in 2020[30] - The provision for expected credit losses for the commercial factoring business was reduced to RMB 5,200,000 in 2021, reflecting improved risk management[35] - The non-performing loan ratio improved to 0.76% in 2021 from 5.31% in 2020, while the provision coverage ratio increased to 225.82% from 109.75%[47] Strategic Focus and Future Plans - The company will focus on diversifying its product strategy and expanding its market share in supply chain finance to enhance returns for shareholders[7] - The company anticipates continued growth in new loans for the commercial factoring business in 2022, despite economic uncertainties due to COVID-19[11] - The group aims to continue developing its commercial factoring business while exploring new business opportunities for growth[12] - The company plans to simplify operations and implement cost control measures to maintain gross profit amid a challenging market environment[45] - The group plans to expand its business into e-commerce platforms and online retail operations, aiming to become a comprehensive "shared retail platform operator"[72] Regulatory and Compliance - The company has actively implemented regulatory policies to ensure the healthy and compliant development of the supply chain finance industry in China[6] - The company is awaiting regulatory approval from the People's Bank of China (PBOC) for the acquisition, with expectations to follow up in the second half of 2022[55] - The company has no significant investment or capital asset plans for the future as of December 31, 2021[83] Corporate Governance and Social Responsibility - The company emphasizes the importance of high levels of corporate social responsibility for building good relationships with stakeholders and creating sustainable returns[109] - The company is committed to contributing to the sustainable development of the environment and communities where it operates[109] - The company strictly adheres to environmental protection laws and regulations as a responsible business participant[110] Employee and Compensation Policies - The overall purpose of the group's compensation policy is to retain and motivate employees for the company's ongoing success[89] - The compensation policy for directors and senior management is reviewed based on the group's performance and market conditions[89] - The group had a total of 25 employees, a decrease from 27 employees in 2020[89] Shareholder Information - The board of directors did not recommend any dividend payment for the year ended December 31, 2021, reflecting the company's financial performance[10] - The group did not recommend the distribution of a final dividend for the years ended December 31, 2021, and December 31, 2020[115] - The top five customers accounted for 84% of total revenue, with the largest customer contributing 40%[130] Acquisition and Related Transactions - An unsecured interest-free loan of RMB 720 million was provided for the acquisition of Tianjin Guanchuang Meitong E-commerce Co., with RMB 576 million (80% of the price) already paid as a prepayment[133] - The company recognized an impairment loss of RMB 157,000,000 as of December 31, 2021, due to the delay in regulatory approval from the People's Bank of China for an acquisition[134] - The company aims to achieve better economies of scale through the demand for factoring loans from related parties associated with the Gome Group[165] Financial Position - As of December 31, 2021, the total equity of the group was RMB 1,552,000,000, a decrease of 8.8% compared to December 31, 2020[74] - The group's cash and cash equivalents as of December 31, 2021, were RMB 247,000,000, down from RMB 350,200,000 in 2020, primarily due to an increase in pledged deposits for bank loans[74] - The current ratio as of December 31, 2021, was 2.31, slightly down from 2.37 in 2020, while the debt-to-equity ratio increased to 57.1% from 50.5%[75]

Financial Performance - For the first half of 2021, Gome Finance Technology recorded a pre-tax profit of RMB 12.8 million, slightly up from RMB 12.7 million in the same period of 2020[9]. - The net profit for the first half of 2021 was RMB 8.9 million, down from RMB 9.8 million in the same period of 2020, with no interim dividend proposed[9]. - The company's revenue decreased by 21% to RMB 37 million, down from RMB 46.9 million in the previous period, primarily due to a decline in income from other financial services including leasing[22]. - Total revenue for the six months ended June 30, 2021, was RMB 37,010,000, a decrease of 21.3% compared to RMB 46,936,000 for the same period in 2020[70]. - The company reported a profit before tax of RMB 12,837,000, slightly up from RMB 12,650,000, indicating a growth of 1.5%[70]. - Net profit for the period was RMB 8,916,000, down from RMB 9,789,000, a decrease of 8.9%[70]. - Total comprehensive income for the period was RMB 4,416,000, significantly lower than RMB 29,270,000 for the same period last year, a decline of 84.9%[74]. Revenue Sources - The commercial factoring business contributed over 90% of the group's operating revenue during the reporting period[10]. - The company recorded a profit of RMB 25.8 million from its commercial factoring business, compared to RMB 22.1 million in the previous year[18]. - Revenue from external customers for the commercial factoring business reached RMB 34,134,000, while other financial services generated RMB 2,876,000, totaling RMB 37,010,000[108]. - Revenue from financing leasing receivables was RMB 905 thousand, down from RMB 5,100 thousand in the previous year, indicating a decline of approximately 82.3%[118]. - Revenue from commercial factoring loans was RMB 34,134 thousand, compared to RMB 36,062 thousand in the same period last year, reflecting a decrease of about 5.3%[118]. Credit and Risk Management - The expected credit loss provision for trade receivables and loans significantly decreased to RMB 1 million from RMB 9.4 million in 2020, contributing to the maintenance of profitability[10]. - The expected credit loss provision for accounts receivable and loans decreased significantly to RMB 1 million, down RMB 8.4 million from the corresponding period[22]. - The expected credit loss provision for receivables was reduced to RMB 1,191,000, down from RMB 10,035,000 in the previous period, showing improved risk management[27]. - The non-performing loan ratio for the commercial factoring business has decreased due to strengthened internal controls over new loan issuance[32]. - The provision coverage ratio was maintained above 100%, indicating that provisions fully cover the total balance of non-performing loans[41]. Operational Efficiency - The company has maintained a cautious approach to accepting new clients and granting credit limits, focusing on high-quality clients with lower interest rates[18]. - The company plans to simplify operations and merge other financial services to improve cost efficiency due to challenging market conditions[19]. - The company has terminated agreements related to pawn financing and sold several inactive subsidiaries to streamline its structure and reduce costs[21]. - The company has integrated the financing leasing business into other financial services since January 2021, impacting revenue streams[37]. - The company continues to monitor and evaluate its operational segments to optimize resource allocation and performance assessment[103]. Cash Flow and Liquidity - The group recorded cash outflow from operating activities totaling RMB 130,600,000 for the period, a decrease from RMB 160,000,000 in the previous year[51]. - The cash and cash equivalents at the end of June 30, 2021, were RMB 195,977,000, an increase from RMB 138,771,000 at the end of June 30, 2020, representing a growth of 41.2%[88]. - The company incurred a net cash outflow from financing activities of RMB (21,675,000) for the six months ended June 30, 2021, compared to RMB (19,397,000) for the same period in 2020, indicating an increase in financing outflows of approximately 11.7%[88]. - The total amount of receivable loans increased by RMB 141,200,000 during the period, contributing to the overall cash outflow reduction[51]. - As of June 30, 2021, the current ratio was 2.39, slightly up from 2.37 at the end of 2020[51]. Equity and Liabilities - The total equity of the group was RMB 1,705,600,000 as of June 30, 2021, slightly up from RMB 1,701,200,000 as of December 31, 2020[50]. - The debt-to-equity ratio was 49.7% as of June 30, 2021, down from 50.5% at the end of 2020[51]. - The total liabilities were RMB 853,551,000, with commercial factoring liabilities at RMB 500,331,000 and other financial services at RMB 3,293,000[108]. - The company's financial liabilities totaled RMB 846,668 thousand, a decrease from RMB 858,590 thousand as of December 31, 2020[164]. - The company has a loan agreement with a related party for RMB 720,000,000, which is pending approval from the People's Bank of China as of June 30, 2021[160]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for certain deviations noted in the report[185]. - The audit committee consists of three independent non-executive directors and has reviewed the interim results for the six months ended June 30, 2021[193]. - The company is committed to maintaining high standards of corporate governance practices[185]. - The company expressed gratitude to shareholders for their strong support and acknowledged the efforts and contributions of management and employees[195]. - The mid-term report for 2021 was presented by the executive director, Zhou Yafei, on August 27, 2021[196].

Financial Performance - The company achieved a profit of RMB 14,300,000 for the year ended December 31, 2020, compared to a loss of RMB 32,000,000 in 2019, marking a turnaround[13]. - Revenue for the year ended December 31, 2020, was RMB 86,700,000, representing a significant increase of 24% compared to RMB 69,900,000 in 2019[13]. - The company recorded a 24% increase in operating revenue, amounting to RMB 16.8 million for the year ended December 31, 2020[25]. - Revenue from the commercial factoring business increased significantly by 60% to RMB 70.1 million, driven by a rise in total lending volume[25]. - The company achieved a profit attributable to owners of RMB 14.3 million in 2020, a turnaround from a loss of RMB 32 million in 2019[26]. - The company recorded a profit of RMB 41,423,000 in the commercial factoring business for 2020, a turnaround from a loss of RMB 11,644,000 in 2019[33]. - The financing leasing business generated revenue of RMB 9,054,000 in 2020, down from RMB 13,359,000 in 2019, reflecting a decrease of approximately 32% due to the suspension of certain operations[40]. - The company reported a basic earnings per share of RMB 0.53 for 2020, a recovery from a loss of RMB 1.18 per share in 2019[27]. Cost Management - Employee costs were successfully reduced to RMB 13,300,000 in 2020 from RMB 17,100,000 in 2019[13]. - The company successfully reduced employee costs by RMB 17.1 million or 56% due to ongoing operational cost control measures[26]. - The company experienced a significant reduction in operating expenses by RMB 14,600,000 in 2020 compared to 2019[48]. - The expected credit loss provision for trade receivables and loans decreased by RMB 3 million or 12% in 2020, reflecting strict credit management[26]. - The total impairment provision for expected credit losses was RMB 22,400,000 in 2020, down from RMB 25,400,000 in 2019[55]. Economic Environment - The overall economic growth in China for 2020 was 2.3%, making it the only major economy to achieve positive growth during the pandemic[10]. - The overall economic environment remains highly volatile, with expectations of increased uncertainty in global economic development[15]. - The company will maintain a cautiously optimistic outlook due to the ongoing global pandemic and its impact on the economy[11]. Strategic Plans - The company plans to continue enhancing its market share in supply chain financial technology services in 2021, focusing on technology empowerment[11]. - The company aims to create greater returns for shareholders through its strategic focus on technology-driven services[11]. - The company plans to strengthen risk management and control operating costs in response to economic uncertainties caused by COVID-19[20]. - The group plans to expand its extended warranty service business, which was previously delayed due to COVID-19[59]. - The company plans to expand its fintech business in the "retail + finance" sector, initially launching extended warranty services to generate revenue from risk spreads, platform commissions, and financial business sharing[164]. Corporate Governance - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[191]. - The board of directors has the discretion to propose any dividend declaration based on various factors, including distributable profits and operational needs[94]. - The board of directors is subject to re-election at the upcoming annual general meeting[194]. - The compensation policy for directors and senior management is reviewed by the remuneration committee based on group performance, individual performance, and comparable market conditions[72]. Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2020, consistent with the previous year[27]. - As of December 31, 2020, the company had no reserves available for distribution to shareholders, consistent with the previous year[106]. - The top five customers accounted for 68% of total revenue, with the largest customer contributing 36% of total revenue as of December 31, 2020[108]. Employee Relations - The company expressed gratitude to employees and management for their efforts during the challenging pandemic period[11]. - The group provides social insurance for employees in China and insurance contributions for employees in Hong Kong according to applicable laws[72]. - The overall purpose of the group's compensation policy is to retain and motivate employees for the group's continued success[72]. Risk Management - The company emphasized the importance of leveraging resources from the Gome system to improve product and service technology[10]. - The company has committed to closely monitor the regulatory environment in China to mitigate risks associated with the agreements[187]. - The company faces risks related to compliance with Chinese laws and potential conflicts of interest among shareholders[184]. Financing and Investments - The company provided an unsecured interest-free loan of RMB 720 million for the acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd., with RMB 576 million (80% of the price) already advanced as of December 31, 2020[111]. - The acquisition of Tianjin Guanchuang Meitong E-commerce Co., Ltd. is expected to be completed in 2021 or 2022, which will drive new business[60]. - The group has issued corporate bonds totaling HKD 35,000,000 with a fixed interest rate of 7.0% due in 2022 and 2023[63]. Compliance and Social Responsibility - The company remains committed to complying with environmental protection laws and regulations as a responsible business participant[89]. - The company emphasizes high levels of corporate social responsibility as crucial for building good relationships with stakeholders and creating sustainable returns[88]. - The company did not make any charitable donations during the year ending December 31, 2020, consistent with the previous year[107].