Financial Performance - Operating revenue for 2024 reached RMB 658,798,000, a slight increase of 0.3% compared to RMB 653,131,000 in 2023[11] - Profit attributable to equity holders was RMB 50,485,000, representing an increase of 8.8% from RMB 46,451,000 in the previous year[11] - Total assets grew to RMB 3,504,127,000, up from RMB 3,300,657,000 in 2023, marking a 6.2% increase[11] - Cash and bank deposits stood at RMB 147,893,000, a slight increase from RMB 142,427,000 in the previous year[11] - The company reported a year-end balance of RMB 767 million for real estate mortgage loans, a decrease from RMB 903 million in the previous year, marking a decline of 15.1%[27] - The year-end balance for movable property mortgage loans was RMB 172 million, with interest income rising to RMB 32,076 thousand, an increase from RMB 26,005 thousand in 2023, indicating a growth of 23.2%[28] - The company reported a pre-tax profit of RMB 62,094 thousand for the Ecological Finance Division in 2024, an increase from RMB 36,166 thousand in 2023, due to rising interest income from special asset management[73] - The company achieved a net foreign exchange gain of RMB 19 thousand for the year ending December 31, 2024, down from RMB 223 thousand in the previous year[95] Business Strategy and Development - The company aims to enhance its risk management and optimize asset quality while expanding its business in the micro and small enterprise sector[17] - In 2025, the company plans to focus on four core strategies: optimizing existing business, preventing risks, expanding new business, and enhancing management efficiency[18] - The company is committed to becoming a leading comprehensive financial service provider in China, offering a diverse range of services including pawn, technology micro-loans, and commercial factoring[4] - The company has successfully innovated in stock pledge business, achieving breakthroughs in its operations[17] - The company plans to enhance liquidity management and dynamically adjust credit policies for real estate mortgage loans to maintain reasonable risk-adjusted returns in 2024[27] - The company aims to develop services for existing customers in movable property mortgage loans while closely monitoring the art market price trends[29] - The company has expanded its business coverage to major cities including Suzhou, Chengdu, Wuhan, Hefei, Wuxi, Changsha, Nanchang, and Fuzhou, positioning itself as a leading provider of inclusive financial services in China[23] - The company plans to focus on providing liquidity support for large, stable assets and enhance cooperation with peers in the technology micro-loan business[38] Loan and Mortgage Performance - The total loans granted to customers increased to RMB 2,517,986,000, up from RMB 2,309,546,000 in 2023, reflecting a growth of 9.0%[11] - The total amount of new real estate mortgage loans issued was RMB 401 million in 2024, down from RMB 569 million in 2023, representing a decline of 29.6%[24] - The interest income from real estate mortgage loans increased to RMB 101,506 thousand in 2024, up from RMB 98,427 thousand in 2023, reflecting a growth of 2.2%[24] - The total number of new loans issued in the technology micro-loan business was 104, with a total loan amount of RMB 635 million, compared to 162 loans and RMB 628 million in the previous year[32] - The interest income from the technology micro-loan business was RMB 60,104 thousand, an increase from RMB 42,830 thousand in the previous year, driven by business expansion in Jiangsu Province[32] - The total number of new loans issued in the transfer loan fund business was 1,143, with a total loan amount of RMB 4,337 million, compared to 972 loans and RMB 4,640 million in the previous year[38] - The interest income from the transfer loan fund business was RMB 5,093 thousand, a decrease from RMB 8,776 thousand in the previous year[38] Risk Management - The company faces various risks in its loan businesses, including regulatory policy changes, credit risk, and liquidity risk[30] - The company has implemented comprehensive internal control measures for the refinancing fund business, including strict post-loan management and real-time risk monitoring[43] - The company has established a risk management framework, with the Chief Risk Officer responsible for risk control and asset disposal[143] - The main risks faced by the factoring and financing leasing businesses include debtor credit risk, accounts receivable risk, and regulatory policy changes[51][56] Investment and Acquisitions - The company completed the acquisition of Guangda Education with a restructuring investment of RMB 196.0 million, and the fair value of the investment as of December 31, 2024, is RMB 217.9 million, representing 6.22% of total assets[102] - The company successfully acquired Zhongzhu Plaza for RMB 88.4 million on January 16, 2024, and will receive RMB 96.67 million for the sale of 95% equity in Huifang Zhongde[103] - The company has no significant investment or major capital asset acquisition plans beyond previously disclosed capital commitments, but will continue to seek new business development opportunities[119] Corporate Governance - The management team is led by Chairman Wu Min, who joined the group in January 2011, overseeing operations and decision-making[146] - The audit committee consists of three members, including independent non-executive directors, responsible for reviewing financial information and risk management[149] - The remuneration committee is tasked with reviewing the compensation of individual directors and senior management, ensuring transparency in the remuneration policy[150] - The nomination committee evaluates the composition of the board and provides recommendations for the appointment and succession of directors[151] - The company has established compliance procedures to ensure adherence to laws and regulations that significantly impact its operations[164] Employee and Director Compensation - Total remuneration for directors, including salaries and bonuses, was approximately RMB 5,978,000 for the year ending December 31, 2024, compared to RMB 6,280,000 in 2023[155] - The highest-paid five individuals in the group, including four executive directors, received a total of RMB 540,000 after deducting the salaries of the four executive directors from the total[155] - The total employee compensation and benefits for the year were approximately RMB 44.089 million, an increase of about RMB 3.333 million compared to the previous year[116] - The group had 156 full-time employees as of December 31, 2024, a decrease of 4 from 160 employees in the previous year[116] Future Outlook - The company plans to propose a final dividend of HKD 0.03 per share, totaling HKD 32.7 million (approximately RMB 30.3 million) for the fiscal year ending December 31, 2024[120] - The company aims to enhance asset safety and focus on post-investment management in equity investment business due to market cooling[63] - The management discussion and analysis section provides insights into future business development strategies and market expansion plans[162]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 658,798,000, representing a 1% increase from RMB 653,131,000 in 2023[2]. - Profit attributable to equity holders of the company increased by 9% to RMB 50,485,000 compared to RMB 46,451,000 in 2023[4]. - Basic earnings per share rose by 7% to RMB 0.046 from RMB 0.043 in the prior year[4]. - The company’s net profit for the year was RMB 71,026,000, up from RMB 66,664,000 in 2023[4]. - The company reported a profit of RMB 50,485,000 for the year, contributing to total comprehensive income of RMB 71,026,000[8]. - The company achieved a net profit attributable to equity holders of RMB 50,485,000 for the year ended December 31, 2024, up from RMB 46,451,000 in 2023, mainly due to increased operating revenue[134]. Assets and Liabilities - Total assets increased by 6% to RMB 3,504,127,000 from RMB 3,300,657,000 in 2023[5]. - Total liabilities rose by 15% to RMB 1,301,438,000 from RMB 1,135,039,000 in the previous year[5]. - The company's total equity as of December 31, 2024, is RMB 2,202,689,000, a decrease from RMB 2,165,618,000 at the beginning of the year[8]. - The total amount of loans granted to customers increased to RMB 3,076,280,000 in 2024 from RMB 2,892,834,000 in 2023, reflecting a growth of approximately 6.35%[55]. Cash Flow - The net cash outflow from operating activities for the year ended December 31, 2024, is RMB 77,774,000, an improvement from RMB 254,186,000 in the previous year[9]. - The net cash inflow from financing activities for the year is RMB 136,048,000, down from RMB 189,918,000 in the previous year[9]. - Cash and cash equivalents at the end of the year decreased to RMB 136,071,000 from RMB 137,274,000 at the beginning of the year[9]. - The net cash outflow from investment activities was RMB 59,049,000, an increase compared to a net inflow of RMB 4,797,000 in 2023, mainly due to significant cash outflows for the acquisition of Hongzhuang Commercial[175]. Investment and Financing - The company reported a net investment loss of RMB 7,954,000, compared to a net gain of RMB 1,797,000 in the previous year[3]. - The company declared dividends amounting to RMB 19,895,000 to equity holders, compared to RMB 30,126,000 in the previous year[9]. - The company has established agreements with its indirect subsidiary, which include management and consulting service agreements, impacting control and economic benefits derived from the subsidiary[29]. - The company has no significant contingent liabilities as of December 31, 2024, consistent with the previous year[172]. Credit and Risk Management - The credit impairment losses for customer loans in 2024 were RMB 101,507,000, compared to RMB 77,699,000 in 2023, marking an increase of about 30.6%[38]. - The expected credit loss provision for loans granted to customers is RMB 825,753,000, accounting for approximately 24.70% of the total loans granted before provisioning[145]. - The expected credit loss provision for third stage loans is RMB 778,144,000, reflecting an increase in overdue loans[146]. - The company has written off assets amounting to RMB 51.8 million during the fiscal year, only after exhausting all practical recovery means[147]. Regulatory and Accounting Changes - The company is currently evaluating the expected impact of the new and revised Hong Kong Financial Reporting Standards on its consolidated financial statements[19]. - The amendments to HKFRS 9 and HKFRS 7 regarding the classification and measurement of financial instruments are not expected to have a significant impact on the group's financial position and performance[20]. - HKFRS 18 introduces significant changes to the presentation of financial statements, particularly affecting the structure of the income statement and requiring enhanced disclosures of performance metrics[21]. Operational Highlights - The company’s management emphasizes a strategy focused on inclusive finance and ecological finance, aiming to provide comprehensive financial services to SMEs and individuals[86]. - The company has successfully implemented innovative stock pledge loans, enhancing its reputation in the industry[87]. - The company plans to enhance liquidity management and adjust credit policies for real estate mortgage loans in 2024 to maintain reasonable risk-adjusted returns[91]. - The company aims to develop services for existing customers in movable property loans while monitoring art market price trends[93]. Employee and Corporate Governance - The workforce decreased to 156 full-time employees as of December 31, 2024, down from 160 in 2023, with total employee compensation and benefits expenses amounting to approximately RMB 44,089,000, an increase of RMB 3,333,000 year-on-year[177]. - The company has achieved compliance with the gender diversity requirement on the board following the appointment of Deng Linyan as a non-executive director on March 7, 2025[184]. Future Outlook - The company plans to propose a final dividend of HKD 0.03 per share, totaling approximately HKD 32.7 million (equivalent to RMB 30.3 million) for the year ended December 31, 2024[180]. - The company has no plans for significant investments or acquisitions beyond the disclosed capital commitments, but will continue to seek new business development opportunities[179].

Financial Performance - Operating revenue for the six months ended June 30, 2024, was RMB 351,380,000, an increase of 11% compared to RMB 317,157,000 in the same period of 2023[5]. - The profit attributable to equity holders of the company was RMB 30,609,000, reflecting an 11% increase from RMB 27,619,000 year-on-year[5]. - Interest income for the six months ended June 30, 2024, was RMB 166,677,000, an increase of 29.6% from RMB 128,653,000 in the same period of 2023[156]. - Total operating income reached RMB 351,380,000, up 10.8% compared to RMB 317,157,000 in the previous year[156]. - Net profit for the period was RMB 42,575,000, representing a 16.8% increase from RMB 36,527,000 in the prior year[157]. - Basic and diluted earnings per share were both RMB 0.028, compared to RMB 0.025 in the same period last year, reflecting a 12% increase[157]. - Operating profit increased to RMB 57,157,000, up 26.7% from RMB 45,114,000 in the previous year[156]. - The company reported a credit impairment loss of RMB 46,136,000, which is higher than the RMB 39,453,000 reported in the same period last year[156]. - Total comprehensive income for the period was RMB 42,575,000, compared to RMB 36,527,000 in the previous year, indicating a growth of 16.8%[157]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 3,544,257,000, representing a 7% increase from RMB 3,300,657,000 at the end of 2023[6]. - Total liabilities increased by 21% to RMB 1,369,219,000 from RMB 1,135,039,000[6]. - The company’s borrowings increased to RMB 1,162,565,000, compared to RMB 934,219,000, representing a growth of 24.4%[159]. - The capital debt ratio as of June 30, 2024, was 38.60%, with a strategy to maintain this ratio below 50%[111]. - The total expected credit loss for collateralized loans was RMB 1,980,965,000, with a provision of RMB 842,022,000 as of June 30, 2024[55]. - The company’s total expected credit loss for non-collateralized loans was RMB 1,345,098,000, with a provision of RMB 794,632,000 as of June 30, 2024[55]. Loan Portfolio and Financing - The company’s loan portfolio granted to customers was RMB 2,484,041,000, an 8% increase from RMB 2,309,546,000[6]. - Total new loans issued amounted to RMB 427 million, an increase from RMB 194 million in the previous year, representing a growth of 120%[17]. - The outstanding loan balance as of June 30, 2024, was RMB 547 million, compared to RMB 416 million in the previous year, reflecting an increase of 31.5%[17]. - The outstanding balance of mortgage loans was RMB 382 million, with 66 total clients, including 52 individual clients and 14 corporate clients[18]. - The total number of new loans issued in the refinancing fund business was 630, up from 453 in the previous year, indicating an increase of approximately 39%[20]. - The financing lease business saw 5 new transactions totaling RMB 29 million, compared to 2 transactions totaling RMB 19 million in the previous year[30]. Risk Management - The company emphasizes the importance of risk management in its mortgage and non-mortgage loan businesses, addressing various risks including credit and regulatory changes[12][15]. - The company has established clear guidelines and policies for credit risk assessment and management across its lending business units[64]. - The group implements post-loan monitoring procedures, conducting quarterly checks and reviews to manage credit risk throughout the loan process[69]. - The group regularly assesses clients' repayment status and financial conditions, including credit records and repayment sources[78]. - The company has increased litigation efforts in response to a rise in economically distressed customers, leading to an increase in new litigation loans[63]. Business Strategy and Development - The company is focusing on value creation and has maintained growth in operating scale and revenue despite adverse external market conditions[7]. - The company aims to become a leading provider of inclusive financial services in China, leveraging its platforms across various cities[8]. - The company plans to focus on high-quality assets that can withstand market cycles and adjust its business strategies based on asset price trends[12]. - The company aims to expand its stock pledge business for listed companies, although it remains cautious due to a weak secondary market[15]. - The company aims to strengthen external cooperation and innovate insurance products in the insurance agency business[45]. Investment and Acquisitions - The company acquired all equity of Guangda Education for a restructuring investment amount of RMB 196.0 million, with a nominal purchase price of RMB 1[116]. - The company entered into a pre-purchase agreement to acquire Zhongzhu Plaza for a total consideration of RMB 88.4 million, with RMB 17.68 million as a deposit[120]. - The company has established partnerships with six senior equity investment institutions, with an intended subscription of RMB 78 million and actual investment of RMB 71 million[38]. - The company plans to raise approximately RMB 200 million through the establishment of a venture capital partnership, with an intended investment of RMB 20 million from its subsidiary[38]. Operational Performance - The company recorded a net cash outflow from operating activities for the reporting period of RMB 207,990,000, primarily due to an increase in loans granted to customers and financial assets held under resale agreements[128]. - The net cash inflow from financing activities for the reporting period was RMB 189,441,000, primarily due to increases in bank loans and loans from other companies[130]. - Employee compensation and benefits for the six months ended June 30, 2024, amounted to RMB 20,626,000, an increase of RMB 1,326,000 compared to the same period last year[131]. - The company did not recommend the payment of an interim dividend for the six months ending June 30, 2024[153]. Corporate Governance - The board of directors maintains high standards of corporate governance, believing it is crucial for protecting shareholder interests and enhancing corporate value[148]. - The company has complied with all principles and applicable code provisions of the corporate governance code during the reporting period[149]. - The company’s independent auditor has not audited the interim report but has reviewed the unaudited interim results for the six months ending June 30, 2024[152].

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，概不就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。 CHINA HUIRONG FINANCIAL HOLDINGS LIMITED 中 國 匯 融 金 融 控 股 有 限 公 司 （ 於開曼群島註冊成立的有限公司） （股份代號：1290） 截至二零二四年六月三十日止六個月之中期業績公告 | --- | --- | --- | --- | |---------------------------------------------|--------------------------------|------------------------------|---------| | 摘 要 | | | | | | | | | | | 截 至 六 月 三 十 二零二 四 年 | 日 止 六 個 月 二 零 二三 年 | 變 動 | | | 人 民 幣 千 元 | 人 民 幣 千 元 | % | | | 未 經 審 計 | 未 經 審 計 | | | 經 營 ...

(b) 攤薄每股盈利 | --- | --- | --- | |------------------------------------------------------------------------------------------------------|---------------------------|-------------------------| | 在 計 算 基 本 每 股 盈 利 時 用 作 分 母 的 普 通 股 加 權 平 均 股 數 （ 千 股 ） | 二零二三 年 \n1,090,335 | 二零二二 年 \n1,090,335 | | 計 算 攤 薄 每 股 盈 利 的 調 整 ： — 購 股 權 （ 千 股 ） | — | — | | 在 計 算 攤 薄 每 股 盈 利 時 用 作 分 母 的 普 通 股 加 權 平 均 股 數 （ 千 股 （ ） 附 註 26 ） | 1,090,335 | 1,090,335 | – 20 – 附註： | --- | --- | --- | |---------------------------|------------- ...

截至二零二三年六月三十日，供應鏈管理業務無基於發票日期的已結算貿易應付款項。 管理層討論與分析 | --- | --- | --- | |----------------------------------------------|------------|------------| | | 二零二三年 | 二零二二年 | | | | | | 新增投資總筆數 | 3 | 1 | | 新增投資總金額（本金）（人民幣百萬元） | 21 | 9 | | 報告期末投資本金金額（本金）（人民幣百萬元） | 81 | 24 | | 投資收入（人民幣千元） | — | — | 18 中國匯融金融控股有限公司 二零二三年中期報告 (e) 特殊資產投資業務 特殊資產投資業務主要依託青島萬宸、蘇州次貝為主體開展業務。青島萬宸，成立於二零一九 年，註冊資本人民幣10百萬元，為本公司間接全資附屬公司。蘇州次貝，成立於二零二一年，註 冊資本人民幣50百萬元，是本公司與外部資產管理機構合作設立的特殊資產投資基金，本公司作 為有限合夥人持股90%。 19 中國匯融金融控股有限公司 二零二三年中期報告 截至二零二三年六月三十日，保險代理業務 ...

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，概不就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。 CHINA HUIRONG FINANCIAL HOLDINGS LIMITED 中 國 匯 融 金 融 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1290） 截至二零二三年六月三十日止六個月之中期業績公告 及 須予披露交易之補充公告 摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 人民幣千元 人民幣千元 % 未經審計 未經審計 經營業績 營業收入 317,157 305,419 4% 營業支出 202,974 191,717 6% 本公司擁有人應佔利潤 27,619 18,149 52% 每股基本盈利（人民幣元） 0.025 0.017 47% ...

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2022, with a total revenue of approximately 1.2 billion, representing a year-over-year growth of 15%[22]. - For the fiscal year ending December 31, 2022, the company's operating revenue was RMB 2,900 million, reflecting a growth of 5.3% compared to 2021[180]. - The profit attributable to equity holders was RMB 490 million, down from RMB 560 million in 2021, representing a decrease of 12.5%[180]. - The total amount of new movable property loans issued reached RMB 152 million, a significant increase from RMB 36 million in the previous year[187]. - The total amount of commercial factoring business continued to grow steadily, exceeding RMB 320 million[187]. - The company achieved interest income of RMB 36.753 million from microloans, slightly down from RMB 36.962 million in the previous year[196]. User Growth and Market Expansion - User data showed an increase in active users by 20% year-over-year, reaching a total of 5 million active users by the end of 2022[22]. - Market expansion plans include entering two new international markets by Q3 2023, aiming to increase market share by 8% in these regions[22]. - The company operates in key regions including Suzhou, Chengdu, Wuhan, Hefei, Wuxi, Changsha, Nanchang, and Hong Kong, aiming for market expansion[147]. Future Projections and Strategies - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% based on current market trends and user acquisition strategies[22]. - New product launches are expected to contribute an additional 200 million in revenue, with a focus on expanding the product line in the fintech sector[22]. - The company plans to enhance its management level and explore new business avenues to increase profitability contributions from new businesses[182]. - The company aims to expand its supply chain management business in the consumer goods sector, which has become a new source of revenue growth[187]. Research and Development - The company is investing in new technology development, allocating 5% of its annual revenue towards R&D to enhance its service offerings and improve user experience[22]. Corporate Governance and Compliance - The company has established a new audit committee to enhance corporate governance and ensure financial transparency, comprising independent non-executive directors[16]. - The management team emphasized the importance of risk management and compliance, with a dedicated team overseeing these areas to mitigate potential financial risks[22]. - The independent non-executive directors confirmed that transactions during the reporting year were conducted under fair and reasonable terms, benefiting shareholders[118]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[130]. Financial Management and Investments - The company is considering strategic acquisitions to bolster its market position, with a budget of up to 300 million allocated for potential mergers and acquisitions in the next year[22]. - Retained earnings will primarily be used for business development and/or acquisitions within mainland China[26]. - The total capital commitment for the proposed partnership is RMB 20,000,000, with the company's commitment being RMB 12,000,000[76]. - The management fee for the investment fund is set at 2% of the total capital commitment annually, capped at 10% of the total capital commitment over the fund's duration[137]. Shareholder Information - The board has proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2022, compared to HKD 0.04 in 2021, with an estimated total payout of approximately HKD 32,710,050 based on 1,090,335,000 shares issued[26]. - The company maintains a minimum public float of 25% as required by the listing rules[140]. Operational Enhancements - The company is focused on building a young and professional workforce to enhance its operational capabilities and innovation[182]. - The company has implemented a comprehensive risk management system covering all employees, products, and processes[187]. - The company emphasizes a strategy of "intensive operation and refined management" to address customer needs and deepen business integration[182]. Loan and Client Information - The company reported a total of 554 clients in real estate mortgage loans, with the top five clients accounting for 41.11% of the total outstanding balance[189]. - The company issued 212 new microloans totaling RMB 458 million, compared to 158 loans totaling RMB 333 million in the previous year[196]. - The outstanding balance of microloans at the end of the reporting period was RMB 407 million, up from RMB 339 million in the previous year[196].

| --- | --- | --- | --- | --- | --- | |------------------------------------------------------------|----------------------|-----------------------------------------------|---------------------|--------------|-------------| | | 普 惠 金 融 | 截 至 二零二二 \n生 態 金 融 | 年 十 二 月 \n總 部 | 三十一 日 止 | | | | 事 業 部 | 事 業 部 | 和 其 他 | 合 併 抵 銷 | 合 計 | | | | | | | | | 外 部 經 營 收 入 | | 214,715 396,436 13,323 | | — | 624,474 | | 內 部 經 營 收 入 | | 532 2,072 13,236 (15,840) | | | — | | 外 部 經 營 成 本 | | (7,989) (366,283) (17,409) | | — | (3 ...

Financial Performance - Operating revenue for the six months ended June 30, 2022, was RMB 305,419,000, representing a 127% increase compared to RMB 134,754,000 in the same period of 2021[12]. - Operating expenses surged to RMB 191,717,000, a significant increase of 1,221% from RMB 14,509,000 year-on-year[12]. - Profit attributable to owners of the company reached RMB 18,149,000, marking a 23% increase from RMB 14,776,000 in the previous year[12]. - Basic earnings per share increased by 21% to RMB 0.017 from RMB 0.014[12]. - Total assets as of June 30, 2022, were RMB 2,846,077,000, showing a slight increase of 0% from RMB 2,836,195,000 at the end of 2021[12]. - The overall operating revenue for the company reached RMB 305,419, an increase from RMB 134,754 in the previous year, primarily due to a significant rise in supply chain revenue[79]. - The net profit attributable to equity holders was RMB 18,149, up from RMB 14,776 year-on-year, mainly due to a reduction in credit impairment losses[79]. Loan and Mortgage Activities - Loans granted to customers amounted to RMB 1,929,962,000, reflecting a 6% increase from RMB 1,815,077,000[12]. - Total new mortgage loans issued in the first half of 2022 amounted to RMB 263 million, a decrease of 36.5% compared to RMB 414 million in 2021[18]. - The balance of real estate mortgage loans as of June 30, 2022, was RMB 687 million, down from RMB 870 million in the previous year, representing a decline of 21%[21]. - Interest income from real estate mortgage loans was RMB 25,172 thousand, a decrease from RMB 27,729 thousand in the same period last year, reflecting a decline of 9.2%[21]. - The balance of personal goods mortgage loans reached RMB 79 million, an increase from RMB 47 million in the previous year, marking a growth of 68.1%[23]. - Interest income from personal goods mortgage loans increased to RMB 6,802 thousand, up from RMB 5,496 thousand, representing a rise of 23.7%[23]. - The balance of non-mortgage loans remained stable at RMB 375 million, with interest income dropping significantly to RMB 11,997 thousand, down from RMB 21,206 thousand, a decline of 43.5%[27]. Business Strategy and Development - The company aims to enhance its position as a leading provider of inclusive financial services in China, focusing on small loans, pawn services, and asset investments[2]. - The management strategy emphasizes value creation, refined management, and the exploration of new business areas, including financing consulting and art auction services[14][15]. - The company is committed to supporting small and micro enterprises and individuals facing financial difficulties through its diverse financial services[14]. - The company aims to expand its operations by establishing 1 to 2 new pawn shops in provincial capital cities annually, targeting a network of 10 to 12 cities by 2025[22]. - The company plans to enhance digital capabilities in its stores to improve customer satisfaction in the personal goods mortgage segment[26]. - The company plans to enhance digital construction in the small loan business and increase service efforts for technology-driven and low-carbon SMEs, fulfilling its social responsibility in promoting inclusive finance[34]. Risk Management and Credit Loss Provisions - The expected credit loss provision for loans granted to customers as of June 30, 2022, totaled RMB 678,078 thousand, representing approximately 26% of the outstanding loans before provisions[98]. - The total expected credit loss provision increased by RMB 33,597 thousand compared to the end of the previous year[98]. - The expected credit loss provision for collateralized loans was RMB 457,810 thousand as of June 30, 2022, compared to RMB 389,812 thousand at the end of the previous year[97]. - The expected credit loss provision for non-collateralized loans was RMB 220,268 thousand as of June 30, 2022, compared to RMB 254,669 thousand at the end of the previous year[97]. - The increase in expected credit loss provisions for the first and second stages was primarily due to the deterioration of some customers' operating conditions due to the COVID-19 pandemic and an increase in the loan balance compared to the end of the previous year[98]. - The group conducts due diligence on SMEs applying for refinancing funds, ensuring compliance with bank management requirements[148]. - Continuous credit risk assessments are conducted based on clients' credit records, repayment sources, and significant events affecting collateral[139]. Business Segments and Performance - The ecological finance division achieved operating revenue of RMB 194,352, a substantial increase from RMB 8,856 in the previous year, driven by significant growth in supply chain management and commercial factoring[83][84]. - The inclusive finance division reported operating revenue of RMB 105,616, a decrease from RMB 116,054, attributed to lower interest income from non-collateral loans and small loans[80][82]. - The total number of new loans issued in the small loan business increased to 111 in the first half of 2022, up from 89 in the same period of 2021, representing a growth of 24.7%[30]. - The total amount of new loans issued reached RMB 187 million in the first half of 2022, slightly up from RMB 185 million in the same period of 2021, indicating a growth of 1.1%[30]. - The total number of new loans issued in the refinancing fund business increased significantly to 312 in the first half of 2022, compared to 220 in the same period of 2021, representing a growth of 41.8%[36]. - Total amount of new loans issued in the refinancing fund business reached RMB 1,937 million in the first half of 2022, a substantial increase from RMB 1,151 million in the same period of 2021, indicating a growth of 68.3%[36]. Corporate Governance and Shareholder Information - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[199]. - The corporate governance practices are based on the principles and code provisions set out in Appendix 14 of the Listing Rules[200]. - As of June 30, 2022, major shareholders include Xiaolai Investment Co., Ltd. with a 23.85% stake and Zhu Tianxiao with a 29.81% stake in the company[182]. - The board members hold a total of 4,330,000 shares, representing 0.39% of the issued shares as of June 30, 2022[177]. Operational Challenges and Future Outlook - The company will continue to monitor the impact of the pandemic on the macro economy and review the effectiveness of risk control policies[172]. - The company faces various risks in its art investment and luxury goods sales, including regulatory changes and market liquidity risks[44][47]. - The company aims to strengthen its marketing team and focus on luxury goods sales and art investment, targeting breakthroughs in both scale and quality within the year[172]. - The company has established partnerships with several prominent firms, including ZTE Corporation and New Hope Group, to expand its supply chain management operations[58].