股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國匯融金融控股有限公司 呈交日期: 2025年9月3日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01290 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD ...

Core Viewpoint - China Huirong (01290) reported a decrease in operating revenue for the six months ending June 30, 2025, primarily due to external factors affecting the macroeconomic environment and the real estate sector [1] Financial Performance - The company achieved operating revenue of 346 million yuan, representing a year-on-year decrease of 2% [1] - Profit attributable to equity holders amounted to 32.76 million yuan, reflecting a year-on-year increase of 7% [1] - Basic earnings per share were reported at 0.03 yuan [1] Factors Influencing Performance - The decline in operating revenue was mainly attributed to the contraction in debt-related business, particularly real estate mortgage loans, which led to a decrease in interest income [1] - The increase in profit attributable to equity holders was due to a reduction in the proportion of non-controlling interests, despite the overall profit decline [1]

Core Viewpoint - China Huirong (01290) reported a decrease in operating revenue for the six months ending June 30, 2025, primarily due to external factors affecting the macroeconomic environment and the real estate sector [1] Financial Performance - The company achieved operating revenue of 346 million yuan, representing a year-on-year decrease of 2% [1] - Profit attributable to equity holders amounted to 32.76 million yuan, reflecting a year-on-year increase of 7% [1] - Basic earnings per share were reported at 0.03 yuan [1] Reasons for Revenue Change - The decline in operating revenue was mainly attributed to the contraction of debt-related business, particularly real estate mortgage loans, which led to a decrease in interest income [1] - The increase in profit attributable to equity holders was due to a reduction in the proportion of non-controlling interests, despite the overall profit decline [1]

[Summary](index=1&type=section&id=Summary) [Financial Summary](index=1&type=section&id=Financial%20Summary) For the six months ended June 30, 2025, China Huirong Financial Holdings Limited's operating revenue decreased by 2% year-on-year, while profit attributable to owners of the Company increased by 7%; total assets and loans to customers decreased, while bank balances and cash on hand increased | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Operating Results** | | | | | Operating Revenue | 345,814 | 351,380 | -2% | | Operating Costs | 221,387 | 211,488 | 5% | | Profit attributable to owners of the Company | 32,762 | 30,609 | 7% | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | 7% | | **Financial Position** | | | | | Total Assets | 3,319,707 | 3,504,127 | -5% | | Total Liabilities | 1,118,343 | 1,301,438 | -14% | | Loans to Customers | 2,375,043 | 2,517,986 | -6% | | Bank Balances and Cash on Hand | 164,877 | 147,893 | 11% | | Net Assets | 2,201,364 | 2,202,689 | 0% | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's operating revenue was **RMB 345,814 thousand**, a 2% year-on-year decrease, with profit for the period at **RMB 40,004 thousand**, a 6% decrease, while profit attributable to owners of the Company increased by 7% to **RMB 32,762 thousand** | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income | 138,907 | 166,677 | | Revenue from Sales of Goods | 198,174 | 183,556 | | Operating Revenue | 345,814 | 351,380 | | Operating Costs | (221,387) | (211,488) | | Credit Impairment Losses | (68,424) | (46,136) | | Profit Before Income Tax | 49,540 | 57,157 | | Profit for the Period | 40,004 | 42,575 | | Profit attributable to owners of the Company | 32,762 | 30,609 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | - The proportion of profit for the period attributable to owners of the Company increased from **71.9% in 2024** to **81.9% in 2025**, with a decrease in profit attributable to non-controlling interests[4](index=4&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets were **RMB 3,319,707 thousand**, a 5% decrease from December 31, 2024; total liabilities were **RMB 1,118,343 thousand**, a 14% decrease; total equity remained stable, with a slight decrease of 0.06% | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 672,899 | 635,941 | | Total Current Assets | 2,646,808 | 2,868,186 | | Total Assets | 3,319,707 | 3,504,127 | | **Equity and Liabilities** | | | | Equity attributable to owners of the Company | 1,899,843 | 1,913,619 | | Non-controlling Interests | 301,521 | 289,070 | | Total Equity | 2,201,364 | 2,202,689 | | Total Non-current Liabilities | 228,555 | 354,935 | | Total Current Liabilities | 889,788 | 946,503 | | Total Liabilities | 1,118,343 | 1,301,438 | - Current portion of loans to customers decreased by approximately **6.7%** from **RMB 2,255,454 thousand** at December 31, 2024, to **RMB 2,103,928 thousand** at June 30, 2025[5](index=5&type=chunk) - Bank balances and cash on hand increased by approximately **11.5%** from **RMB 147,893 thousand** at December 31, 2024, to **RMB 164,877 thousand** at June 30, 2025[5](index=5&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [1. General Information](index=6&type=section&id=1.%20General%20Information) China Huirong Financial Holdings Limited, incorporated in the Cayman Islands, primarily provides secured and unsecured loan services to customers in China, with its shares listed on the Hong Kong Stock Exchange in October 2013 and financial information presented in RMB - The Company is an investment holding company primarily providing secured and unsecured loan services in China[7](index=7&type=chunk) - The Company's shares were listed on The Stock Exchange of Hong Kong Limited on **October 28, 2013**[7](index=7&type=chunk) [2. Basis of Preparation](index=6&type=section&id=2.%20Basis%20of%20Preparation) The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and on a going concern basis - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[8](index=8&type=chunk) - The Group continues to prepare its financial information on a going concern basis[9](index=9&type=chunk) [3. Significant Accounting Policies](index=6&type=section&id=3.%20Significant%20Accounting%20Policies) The Group's accounting policies are consistent with the 2024 consolidated financial statements, with the first-time application of HKAS 21 amendments on January 1, 2025, having no retrospective adjustment, while HKFRS 18, effective January 1, 2027, is expected to significantly impact financial statement presentation and disclosure - Accounting policies are consistent with the 2024 consolidated financial statements[10](index=10&type=chunk) - The first-time application of HKAS 21 amendments 'Lack of Exchangeability' from **January 1, 2025**, did not result in changes to accounting policies or retrospective adjustments[11](index=11&type=chunk) - HKFRS 18, effective **January 1, 2027**, is expected to significantly impact the presentation and disclosure of financial statements, and management is currently assessing its effects[12](index=12&type=chunk)[13](index=13&type=chunk) [4. Critical Accounting Estimates and Judgments](index=7&type=section&id=4.%20Critical%20Accounting%20Estimates%20and%20Judgments) The significant judgments and key sources of estimation uncertainty applied by management in preparing the interim financial information are consistent with those used in the 2024 consolidated financial statements - Key accounting estimates and judgments are consistent with the 2024 consolidated financial statements[14](index=14&type=chunk) [5. Segment Information](index=7&type=section&id=5.%20Segment%20Information) The Group's operations are divided into Inclusive Finance and Ecosystem Finance business segments, with the former primarily offering loan services and the latter covering supply chain technology, tech-enabled lending, factoring, insurance brokerage, and equity investment businesses; in the first half of 2025, both segments saw a decrease in profit before tax, while external operating revenue for Ecosystem Finance increased - The Group's business is divided into Inclusive Finance Business Segment and Ecosystem Finance Business Segment[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) Segment Performance | Metric (RMB thousands) | Inclusive Finance Business Segment (2025) | Ecosystem Finance Business Segment (2025) | Inclusive Finance Business Segment (2024) | Ecosystem Finance Business Segment (2024) | | :--- | :--- | :--- | :--- | :--- | | External Operating Revenue | 107,945 | 230,652 | 117,293 | 227,147 | | Profit/(Loss) Before Income Tax | 23,222 | 11,726 | 46,822 | 23,645 | | Segment Assets | 1,406,889 | 1,261,267 | 1,643,397 | 1,337,055 | | Segment Liabilities | (184,014) | (533,813) | (262,685) | (599,691) | [6. Interest Income](index=10&type=section&id=6.%20Interest%20Income) For the six months ended June 30, 2025, the Group's total interest income was **RMB 138,907 thousand**, a decrease from **RMB 161,906 thousand** in the prior period, primarily due to a significant drop in interest income from secured loans to customers, partially offset by a substantial increase from unsecured loans to customers Interest Income by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured Loans to Customers | 54,457 | 96,718 | | Unsecured Loans to Customers | 80,553 | 48,155 | | Interest Income from Financial Assets Purchased Under Resale Agreements | 3,351 | 16,524 | | Interest Income from Bank Deposits | 546 | 509 | | **Total** | **138,907** | **161,906** | - Interest income from secured loans to customers decreased by **43.7%** year-on-year, while interest income from unsecured loans to customers increased by **67.3%** year-on-year[22](index=22&type=chunk) [7. Revenue from Sales of Goods and Cost of Sales](index=10&type=section&id=7.%20Revenue%20from%20Sales%20of%20Goods%20and%20Cost%20of%20Sales) The Group's sales of goods primarily include electronic products and daily necessities - Sales of goods primarily consist of electronic products and daily necessities[23](index=23&type=chunk) [8. Interest Expenses](index=10&type=section&id=8.%20Interest%20Expenses) For the six months ended June 30, 2025, the Group's total interest expenses decreased by **17%** to **RMB 24,571 thousand** from **RMB 29,582 thousand** in the prior period, mainly due to a significant reduction in interest expenses on micro-loan company borrowings Interest Expenses by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expenses on Bank Borrowings | 15,755 | 15,268 | | Interest Expenses on Micro-loan Company Borrowings | 679 | 3,900 | | Interest Expenses on Other Borrowings | 8,005 | 10,075 | | Other Interest Expenses | 132 | 339 | | **Total** | **24,571** | **29,582** | - Interest expenses on micro-loan company borrowings decreased by **82.6%** year-on-year[24](index=24&type=chunk) [9. Net Investment Income/(Loss)](index=10&type=section&id=9.%20Net%20Investment%20Income%2F%28Loss%29) For the six months ended June 30, 2025, the Group's net investment income significantly decreased to **RMB 6 thousand** from **RMB 1,218 thousand** in the prior period, primarily due to the absence of net gains on disposal of financial assets this period Net Investment Income/(Loss) by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Gains/(Losses) from Fair Value Changes | — | (516) | | Net (Loss)/Gain on Disposal of Financial Assets | — | 1,734 | | Others | 6 | — | | **Total** | **6** | **1,218** | [10. Credit Impairment Losses](index=11&type=section&id=10.%20Credit%20Impairment%20Losses) For the six months ended June 30, 2025, the Group's credit impairment losses increased by **48.3%** to **RMB 68,424 thousand** from **RMB 46,136 thousand** in the prior period, with credit impairment losses on loans to customers being the primary driver of this increase Credit Impairment Losses by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Credit Impairment Losses on Loans to Customers | 70,382 | 40,495 | | Credit Impairment Losses on Financial Guarantees | 1,569 | 2,276 | | Credit Impairment Losses on Financial Assets Purchased Under Resale Agreements | (3,527) | 3,365 | | **Total** | **68,424** | **46,136** | - Credit impairment losses on loans to customers increased by **73.8%** year-on-year[25](index=25&type=chunk) [11. Other Operating Income](index=11&type=section&id=11.%20Other%20Operating%20Income) For the six months ended June 30, 2025, the Group's other operating income significantly increased to **RMB 28,197 thousand** from **RMB 5,548 thousand** in the prior period, primarily driven by net gains on disposal of assets taken over in settlement of debts Other Operating Income by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Gain/(Loss) on Disposal of Assets Taken Over in Settlement of Debts | 21,748 | (127) | | Rental Income | 4,979 | 4,971 | | Others | 1,470 | 704 | | **Total** | **28,197** | **5,548** | - The shift from a net loss on disposal of assets taken over in settlement of debts in the prior period to a net gain in the current period is the main reason for the significant increase in other operating income[25](index=25&type=chunk) [12. Other Losses, Net](index=11&type=section&id=12.%20Other%20Losses%2C%20Net) For the six months ended June 30, 2025, the Group's other losses, net, decreased to **RMB 126 thousand** from **RMB 186 thousand** in the prior period, despite an increase in net exchange losses, due to higher government grants Other Losses, Net by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Exchange Losses | (396) | (266) | | Government Grants | 270 | 80 | | **Total** | **(126)** | **(186)** | [13. Income Tax Expense](index=11&type=section&id=13.%20Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense decreased by **34.6%** to **RMB 9,536 thousand** from **RMB 14,582 thousand** in the prior period, primarily due to a deferred tax credit and other adjustments Income Tax Expense by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 13,402 | 15,395 | | Deferred Income Tax | (3,866) | (813) | | **Total** | **9,536** | **14,582** | - Deferred income tax shifted from a debit in the prior period to a credit in the current period, positively impacting income tax expense[25](index=25&type=chunk) - The Group is exempt from income tax in the Cayman Islands and British Virgin Islands, subject to a **16.5%** profits tax rate in Hong Kong, and a **25%** corporate income tax rate in mainland China, with preferential tax rates for small and micro-enterprises[26](index=26&type=chunk)[27](index=27&type=chunk) [14. Earnings Per Share](index=13&type=section&id=14.%20Earnings%20Per%20Share) For the six months ended June 30, 2025, the Group's basic and diluted earnings per share both increased to **RMB 0.030** from **RMB 0.028** in the prior period, primarily due to an increase in profit attributable to owners of the Company, while the weighted average number of ordinary shares remained unchanged Earnings Per Share Details | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousands) | 32,762 | 30,609 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 1,090,335 | 1,090,335 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | | Diluted Earnings Per Share (RMB) | 0.030 | 0.028 | - The Group has not issued any potential dilutive ordinary shares, thus basic and diluted earnings per share are identical[30](index=30&type=chunk) [15. Dividends](index=13&type=section&id=15.%20Dividends) The Company paid a dividend of **HKD 0.03** per share, totaling **HKD 32.7 million** (equivalent to **RMB 29.8 million**), for the year ended December 31, 2024, on June 26, 2025 - Dividends for the 2024 financial year of **HKD 0.03** per share, totaling **RMB 29.8 million**, were paid on **June 26, 2025**[31](index=31&type=chunk) - Dividends for the 2023 financial year of **HKD 0.02** per share, totaling **RMB 19.8 million**, were paid on **June 28, 2024**[31](index=31&type=chunk) [16. Property, Plant and Equipment](index=14&type=section&id=16.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment had a carrying value of **RMB 50,734 thousand**, a slight decrease from **RMB 51,562 thousand** at December 31, 2024, with new additions of **RMB 449 thousand** during the period Property, Plant and Equipment Carrying Value | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 48,283 | 48,733 | | Motor Vehicles | 586 | 221 | | Electronic Equipment and Others | 1,865 | 2,608 | | **Total Carrying Value** | **50,734** | **51,562** | - Additions to property, plant and equipment amounted to **RMB 449 thousand** during the period[32](index=32&type=chunk) [17. Right-of-Use Assets and Leases](index=14&type=section&id=17.%20Right-of-Use%20Assets%20and%20Leases) As of June 30, 2025, the Group's right-of-use assets increased to **RMB 17,605 thousand** from **RMB 15,709 thousand** at December 31, 2024, with total lease liabilities also rising from **RMB 3,765 thousand** to **RMB 6,277 thousand** Right-of-Use Assets and Lease Liabilities | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Right-of-Use Assets** | | | | Land Use Rights | 11,402 | 11,573 | | Properties | 6,203 | 4,136 | | **Total Right-of-Use Assets** | **17,605** | **15,709** | | **Lease Liabilities** | | | | Current | 3,126 | 1,801 | | Non-current | 3,151 | 1,964 | | **Total Lease Liabilities** | **6,277** | **3,765** | - Land use rights are pledged as collateral for non-current dedicated borrowings of **RMB 164.3 million**[35](index=35&type=chunk) [18. Investments Accounted for Using the Equity Method](index=15&type=section&id=18.%20Investments%20Accounted%20for%20Using%20the%20Equity%20Method) As of June 30, 2025, the Group's investments accounted for using the equity method remained stable at **RMB 2,132 thousand**, with the Group holding a **90%** equity interest in Suzhou Cibei Enterprise Management Consulting Partnership and exercising joint control Investments Accounted for Using the Equity Method | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance at January 1 | 2,132 | 5,374 | | Capital Reduction | — | (1,252) | | **Balance at June 30** | **2,132** | **4,122** | - The Group holds a **90%** equity interest in Suzhou Cibei Enterprise Management Consulting Partnership and exercises joint control due to partnership agreement provisions, with the investment accounted for using the equity method[36](index=36&type=chunk) [19. Investment Properties](index=16&type=section&id=19.%20Investment%20Properties) As of June 30, 2025, the Group's investment properties had a fair value of **RMB 169,746 thousand**, consistent with December 31, 2024, primarily comprising Zhonghui Financial Building, which is partially leased out and measured at fair value, and pledged as collateral for non-current dedicated bank borrowings Investment Properties Fair Value | Category | June 30, 2025 (RMB thousands) | | :--- | :--- | | Zhonghui Financial Building | 168,066 | | Others | 1,680 | | **Total Fair Value** | **169,746** | - Zhonghui Financial Building is pledged as collateral for non-current dedicated bank borrowings of **RMB 164.3 million**[37](index=37&type=chunk) [20. Loans to Customers](index=17&type=section&id=20.%20Loans%20to%20Customers) As of June 30, 2025, the Group's total net loans to customers decreased by **6%** to **RMB 2,375,043 thousand** from December 31, 2024, with both current secured and unsecured loans decreasing, while non-current unsecured loans slightly increased; total net overdue loans decreased to **RMB 629,385 thousand** from **RMB 669,021 thousand** at December 31, 2024 Loans to Customers, Net | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Loans to Customers, Net** | | | | Unsecured Loans | 271,115 | 262,532 | | **Current Loans to Customers, Net** | | | | Secured Loans | 1,209,950 | 1,382,366 | | Unsecured Loans | 893,978 | 873,088 | | **Total Loans to Customers, Net** | **2,375,043** | **2,517,986** | - Current secured loans, net, decreased by **12.5%**, while current unsecured loans, net, increased by **2.4%**[41](index=41&type=chunk)[42](index=42&type=chunk) - Total net overdue loans decreased by **5.9%** from **RMB 669,021 thousand** at December 31, 2024, to **RMB 629,385 thousand** at June 30, 2025[43](index=43&type=chunk) - The fixed annual interest rate range for chattel mortgage loans narrowed from **8.0% to 54.0% in 2024** to **8.0% to 36.0% in 2025**[39](index=39&type=chunk) [21. Finance Lease Receivables](index=20&type=section&id=21.%20Finance%20Lease%20Receivables) As of June 30, 2025, the Group's net finance lease receivables increased by **29.8%** to **RMB 128,691 thousand** from **RMB 99,135 thousand** at December 31, 2024, with both undiscounted lease payments and expected credit impairment losses increasing Finance Lease Receivables Details | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Undiscounted Lease Payments | 154,187 | 113,405 | | Less: Unearned Finance Lease Income | (18,412) | (8,755) | | Less: Expected Credit Impairment Losses | (7,084) | (5,515) | | **Net Investment in Leases** | **128,691** | **99,135** | | Non-current Finance Lease Receivables | 46,444 | 26,536 | | Current Finance Lease Receivables | 82,247 | 72,599 | - The average effective interest rate for signed contracts decreased from **12.66% per annum** at December 31, 2024, to **11.17% per annum** at June 30, 2025[48](index=48&type=chunk) [22. Deferred Tax](index=21&type=section&id=22.%20Deferred%20Tax) As of June 30, 2025, the Group's net deferred tax assets increased to **RMB 110,173 thousand** from **RMB 103,374 thousand** at December 31, 2024, and net deferred tax liabilities increased to **RMB 21,904 thousand** from **RMB 18,971 thousand**, with both expected to reverse in more than one year Deferred Tax Assets and Liabilities | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Deferred Tax Assets** | | | | Expected Credit Losses on Financial Assets | 110,245 | 103,446 | | Deductible Losses | 1,381 | 4,314 | | Total Deferred Tax Assets | 111,626 | 107,760 | | Offset against deferred tax liabilities in accordance with offsetting criteria | (1,453) | (4,386) | | **Net Deferred Tax Assets** | **110,173** | **103,374** | | **Deferred Tax Liabilities** | | | | Net Gains from Investment Properties | 19,117 | 19,117 | | Net Gains from Financial Instruments at Fair Value Through Profit or Loss | 4,240 | 4,240 | | Total Deferred Tax Liabilities | 23,357 | 23,357 | | Offset against deferred tax assets in accordance with offsetting criteria | (1,453) | (4,386) | | **Net Deferred Tax Liabilities** | **21,904** | **18,971** | - Deferred tax assets are primarily composed of expected credit losses on financial assets, while deferred tax liabilities mainly consist of net gains from investment properties and financial instruments at fair value through profit or loss[49](index=49&type=chunk)[50](index=50&type=chunk) [23. Financial Assets at Fair Value Through Profit or Loss](index=23&type=section&id=23.%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2025, the Group's total financial assets at fair value through profit or loss slightly decreased to **RMB 115,782 thousand** from **RMB 119,859 thousand** at December 31, 2024, primarily comprising equity securities and structured deposits Financial Assets at Fair Value Through Profit or Loss | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Securities | 95,352 | 99,429 | | Structured Deposits | 20,430 | 20,430 | | **Total** | **115,782** | **119,859** | - Structured deposits of **RMB 20.0 million** are pledged as collateral for bank borrowings of **RMB 19.0 million**[52](index=52&type=chunk) [24. Bank Balances and Cash on Hand](index=23&type=section&id=24.%20Bank%20Balances%20and%20Cash%20on%20Hand) As of June 30, 2025, the Group's total bank balances and cash on hand increased by **11.5%** to **RMB 164,877 thousand** from **RMB 147,893 thousand** at December 31, 2024, primarily due to a significant increase in bank time deposits with original maturity over three months Bank Balances and Cash on Hand | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash on Hand | 1,827 | 1,659 | | Demand Bank Deposits | 87,670 | 134,316 | | Securities Company Deposits | — | 96 | | Bank Time Deposits with Original Maturity Over Three Months, Net | 75,380 | 11,822 | | **Total** | **164,877** | **147,893** | - Net bank time deposits with original maturity over three months increased by **537.6%** year-on-year[51](index=51&type=chunk) - Bank balances and cash on hand are primarily denominated in RMB, accounting for **97.4%** of the total[51](index=51&type=chunk) [25. Share Capital](index=24&type=section&id=25.%20Share%20Capital) As of June 30, 2025, the Company's issued and fully paid ordinary share capital remained unchanged at **RMB 8,662,017 thousand**, comprising **1,090,335,000** shares, consistent with December 31, 2024 Share Capital Details | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Shares | 1,090,335,000 | 1,090,335,000 | | Ordinary Shares (RMB) | 8,662,017 | 8,662,017 | - There were no changes in ordinary shares during the period[53](index=53&type=chunk) [26. Share Premium and Other Reserves](index=24&type=section&id=26.%20Share%20Premium%20and%20Other%20Reserves) As of June 30, 2025, the Group's total share premium and other reserves decreased to **RMB 1,175,077 thousand** from **RMB 1,191,717 thousand** at January 1, 2025, primarily due to a reduction in capital reserve from partial disposal of a subsidiary Share Premium and Other Reserves | Category | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Share Premium | 604,478 | 604,478 | | Capital Reserve | 498,574 | 481,934 | | Statutory Reserve | 77,715 | 77,715 | | General Reserve | 4,417 | 4,417 | | Share-based Payment Reserve | 6,533 | 6,533 | | **Total** | **1,191,717** | **1,175,077** | - Partial disposal of a subsidiary without losing control resulted in a **RMB 16,640 thousand** decrease in capital reserve[54](index=54&type=chunk) [27. Borrowings](index=25&type=section&id=27.%20Borrowings) As of June 30, 2025, the Group's total borrowings decreased by **14%** to **RMB 952,974 thousand** from **RMB 1,107,583 thousand** at December 31, 2024, with significant reductions in non-current bank borrowings and current micro-loan company borrowings, while current bank borrowings and employee borrowings increased Borrowings by Category | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Borrowings** | | | | Bank Borrowings | 203,500 | 334,000 | | **Current Borrowings** | | | | Bank Borrowings | 457,810 | 425,020 | | Borrowings from Other Companies | 105,415 | 115,520 | | Borrowings from Micro-loan Companies | 40,000 | 95,000 | | Borrowings from Employees within the Group | 136,249 | 128,043 | | Borrowings from Ultimate Shareholders | 10,000 | 10,000 | | **Total** | **952,974** | **1,107,583** | - Non-current bank borrowings decreased by **39.1%**, and current micro-loan company borrowings decreased by **57.9%**[55](index=55&type=chunk) - Non-current bank borrowings are secured or guaranteed by Zhonghui Financial Building, subsidiary shares, and other assets[56](index=56&type=chunk) - Current bank borrowings have interest rates ranging from **1.49% to 6.0%** and are partially guaranteed by structured deposits, Wuzhong Jiaye, and Wuzhong Group[57](index=57&type=chunk)[58](index=58&type=chunk) [28. Other Current Liabilities](index=26&type=section&id=28.%20Other%20Current%20Liabilities) As of June 30, 2025, the Group's total other current liabilities decreased by **13%** to **RMB 121,528 thousand** from **RMB 139,598 thousand** at December 31, 2024, with significant reductions in payables for construction projects, advances from transferees of financial asset receivables, and deposits for resale arrangements, while bills payable significantly increased Other Current Liabilities by Category | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Payables for Construction Projects | — | 14,899 | | Advances from Transferees of Financial Asset Receivables | — | 19,150 | | Advances from Customers for Goods | 487 | 13 | | Advances from Customers for Consulting Fees | — | 450 | | Employee Benefits Payable | 2,351 | 5,686 | | Taxes and Other Levies Payable | 2,254 | 3,676 | | Deposits for Resale Arrangements | — | 50,000 | | Bills Payable | 104,695 | 31,746 | | Other Financial Liabilities | 11,741 | 13,978 | | **Total** | **121,528** | **139,598** | - Bills payable increased by **230%** year-on-year[59](index=59&type=chunk) [29. Contingent Liabilities](index=26&type=section&id=29.%20Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities, consistent with December 31, 2024 - The Group has no significant contingent liabilities[60](index=60&type=chunk) [30. Commitments](index=27&type=section&id=30.%20Commitments) As of June 30, 2025, the Group's total capital commitments remained unchanged at **RMB 57,868 thousand**, primarily comprising agreed capital contributions to Suzhou Cibei, Qianhui Tongcui, and Kangli Junzhuo Capital Commitments | Investee Company Name | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Suzhou Cibei | 42,868 | 42,868 | | Qianhui Tongcui | 10,000 | 10,000 | | Kangli Junzhuo | 5,000 | 5,000 | | **Total** | **57,868** | **57,868** | - Of the **RMB 45.0 million** agreed capital contribution to Suzhou Cibei, **RMB 42.9 million** remains unpaid[62](index=62&type=chunk) [Management Discussion and Analysis](index=28&type=section&id=Management%20Discussion%20and%20Analysis) [1. Business Review and Development](index=28&type=section&id=1.%20Business%20Review%20and%20Development) During the reporting period, the Company maintained steady progress amidst a weak external economic environment, driving development through innovation, optimizing business structure, and strengthening risk control; the Inclusive Finance Business Segment focused on resolving existing issues and achieving new growth, while the Ecosystem Finance Business Segment maintained good development despite intensified market competition, with special asset investment business performing remarkably - The Company maintained steady progress, driving development through innovation, continuously optimizing business structure, strengthening risk control, and enhancing management efficiency[63](index=63&type=chunk) - The Inclusive Finance Business Segment focused on resolving existing real estate mortgage loans and achieving new growth, while steadily developing listed company stock pledge loans for unsecured loans[63](index=63&type=chunk) - The Ecosystem Finance Business Segment's commercial factoring business maintained good development, and key projects in special asset investment business exited safely, contributing significantly to profit[63](index=63&type=chunk) [1.1 Inclusive Finance Business Segment](index=28&type=section&id=1.1%20Inclusive%20Finance%20Business%20Segment) The Inclusive Finance Business Segment provides loan services to SMEs and individuals through pawn, technology micro-lending, bridging loan funds, art investment, and overseas financial businesses; during the period, real estate mortgage loan interest income decreased, unsecured loan interest income increased, technology micro-lending and bridging loan fund businesses scaled down, art investment business income decreased, and overseas financial business actively reduced loan balances - The Inclusive Finance Business Segment primarily provides services to customers through secured and unsecured loans, covering cities such as Suzhou, Chengdu, Wuhan, Hefei, Changsha, Nanjing, and Fuzhou[64](index=64&type=chunk)[65](index=65&type=chunk) [Pawn Business](index=29&type=section&id=Pawn%20Business) The pawn business includes real estate and chattel mortgage loans; as of June 30, 2025, real estate mortgage loan balances and interest income decreased due to declining property prices and increased market competition, while unsecured loan balances and interest income rose, benefiting from new listed company stock pledge business Pawn Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Real Estate Mortgage Loans Granted (RMB millions) | 107 | 254 | | Real Estate Mortgage Loan Balance (Principal) at Period End (RMB millions) | 683 | 793 | | Interest Income from Real Estate Mortgage Loans (RMB thousands) | 16,596 | 54,830 | | Chattel Mortgage Loan Balance (Principal) at Period End (RMB millions) | 175 | 173 | | Interest Income from Chattel Mortgage Loans (RMB thousands) | 15,392 | 15,786 | | Total New Unsecured Loans Granted (RMB millions) | 286 | 374 | | Unsecured Loan Balance (Principal) at Period End (RMB millions) | 482 | 436 | | Interest Income from Unsecured Loans (RMB thousands) | 44,310 | 10,175 | - Interest income from real estate mortgage loans decreased by **69.7%** year-on-year, while interest income from unsecured loans increased by **335.5%** year-on-year[67](index=67&type=chunk) - The pawn business will prudently reduce the scale of art mortgage loans in the future[72](index=72&type=chunk) - Unsecured loans will steadily reduce the balance of existing businesses and expand the scale of listed company stock pledge businesses in the future[73](index=73&type=chunk) [Technology Micro-loan Business](index=33&type=section&id=Technology%20Micro-loan%20Business) The technology micro-loan business, primarily conducted through Dongshan Micro-loan, provides secured, guaranteed, and unsecured loans to SMEs and individuals; as of June 30, 2025, both new loan amounts and interest income decreased due to intensified market competition and challenges in business expansion, with future plans to increase services for technology-driven and low-carbon SMEs Technology Micro-loan Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Loans Granted (RMB millions) | 151 | 427 | | Balance (Principal) at Period End (RMB millions) | 495 | 547 | | Interest Income (RMB thousands) | 22,144 | 24,499 | - Total new loans granted decreased by **64.6%** year-on-year, and interest income decreased by **9.6%** year-on-year[75](index=75&type=chunk) - The future development direction is to increase services for technology-driven and low-carbon SMEs, fulfilling social responsibility for inclusive finance[79](index=79&type=chunk) [Bridging Loan Fund Business](index=36&type=section&id=Bridging%20Loan%20Fund%20Business) The bridging loan fund business, primarily conducted through Huifang Rongtong, provides short-term bridging loan services to SMEs and local government platforms; as of June 30, 2025, both new loan amounts and interest income decreased due to the introduction of banks' interest-free renewal loans and regulatory requirements, with future plans to maintain customer acquisition scenarios and support SMEs' bridging loan needs Bridging Loan Fund Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Loans Granted (RMB millions) | 1,084 | 2,360 | | Interest Income (RMB thousands) | 1,179 | 2,684 | - Total new loans granted decreased by **54.1%** year-on-year, and interest income decreased by **56.1%** year-on-year[81](index=81&type=chunk) - The future development direction is to adhere to the customer acquisition scenarios of bridging loan funds and firmly support SMEs' bridging loan needs[83](index=83&type=chunk) [Art Investment Business](index=37&type=section&id=Art%20Investment%20Business) The art investment business, primarily conducted through Nanjing Yiling, covers all categories of art, including modern and contemporary Chinese and international paintings; as of June 30, 2025, art transaction inventory and operating income both decreased due to economic downturn and reduced art market transaction volume and prices, with future plans to moderately reduce transaction scale and build a comprehensive service platform for the entire art industry chain Art Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Art Transaction Inventory Amount at Period End (RMB millions) | 114 | 133 | | Art Business Operating Income (RMB thousands) | 7,700 | 9,148 | - Art business operating income decreased by **15.8%** year-on-year[85](index=85&type=chunk) - The future development direction is to strive to build a comprehensive service platform for the entire art industry chain and develop into a well-known regional art comprehensive service institution[87](index=87&type=chunk) [Overseas Financial Business](index=38&type=section&id=Overseas%20Financial%20Business) The overseas financial business, primarily conducted through Huifang Investment in Hong Kong, provides guarantee-backed loans; as of June 30, 2025, both loan balances and interest income decreased due to the company's proactive reduction of loan balances to control operating risks, with future plans to explore opportunities in pawn and digital assets in more overseas countries and regions like Southeast Asia Overseas Financial Business Performance | Metric (HKD millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Balance (Principal) at Period End (HKD millions) | 20 | 23 | | Interest Income (HKD thousands) | 545 | 724 | - Interest income decreased by **24.7%** year-on-year[88](index=88&type=chunk) - The future development direction is to seek layout opportunities in pawn, digital assets, and other fields in more overseas countries and regions like Southeast Asia[90](index=90&type=chunk) [1.2 Ecosystem Finance Business Segment](index=39&type=section&id=1.2%20Ecosystem%20Finance%20Business%20Segment) The Ecosystem Finance Business Segment encompasses commercial factoring, finance leasing, supply chain management, equity investment, special asset investment, and insurance agency businesses; during the period, commercial factoring saw increased balances but decreased income, finance leasing expanded with increased income, supply chain management sales revenue rose, equity investment generated positive income, key special asset investment projects exited safely, and insurance agency business income grew - The Ecosystem Finance Business Segment is committed to supply chain technology, tech-enabled lending, factoring, insurance brokerage, and equity investment businesses[91](index=91&type=chunk)[92](index=92&type=chunk) [Commercial Factoring Business](index=40&type=section&id=Commercial%20Factoring%20Business) The commercial factoring business, primarily conducted through Huida Factoring, provides trade financing services to SMEs; as of June 30, 2025, both new accounts receivable factoring business amounts and period-end balances increased, but the combined interest and service fee income decreased, mainly due to overdue businesses entering litigation, with future plans to continue focusing on government project factoring and promote multi-dimensional financing Commercial Factoring Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Accounts Receivable Factoring Business Amount (RMB millions) | 120 | 98 | | Balance (Principal) at Period End (RMB millions) | 460 | 421 | | Interest Income (RMB thousands) | 16,249 | 18,208 | | Service Fee Income (RMB thousands) | 2,249 | 2,938 | - Total new accounts receivable factoring business amount increased by **22.4%** year-on-year, and period-end balance increased by **9.3%** year-on-year[94](index=94&type=chunk) - Combined interest income and service fee income decreased by **18.2%** year-on-year[94](index=94&type=chunk) - The future development direction is to monitor local government accounts payable, dynamically adjust business scale, and promote multi-dimensional financing[96](index=96&type=chunk) [Finance Lease Business](index=42&type=section&id=Finance%20Lease%20Business) The finance lease business, primarily conducted through Huifang Rongzu, provides direct finance lease and sale-and-leaseback services; as of June 30, 2025, both new finance lease transaction amounts and period-end balances increased, with combined interest and service fee income growing due to business structure optimization and scale expansion, and future plans to explore direct lease opportunities in advanced manufacturing, healthcare, and public utilities Finance Lease Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Finance Lease Transactions (RMB millions) | 90 | 29 | | Balance (Principal) at Period End (RMB millions) | 135 | 109 | | Interest Income (RMB thousands) | 5,674 | 4,531 | | Service Fee Income (RMB thousands) | 472 | 241 | - Total new finance lease transactions increased by **210.3%** year-on-year, and combined interest income and service fee income increased by **24.9%** year-on-year[98](index=98&type=chunk) - The future development direction is to explore direct lease opportunities in advanced manufacturing, healthcare, and public utilities[100](index=100&type=chunk) [Supply Chain Management Business](index=43&type=section&id=Supply%20Chain%20Management%20Business) The supply chain management business, primarily conducted through Huifang Supply Chain, focuses on consumer goods such as grain, oil, and fresh produce; as of June 30, 2025, both total transaction volume and sales revenue increased due to business structure optimization and higher fresh produce sales, with future plans to actively expand partnerships with qualified entities to establish long-term, large-volume supply chain collaborations Supply Chain Management Business Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 747 | 643 | | Sales Revenue | 198,171 | 183,556 | | Grain and Oil Sales Revenue | 161,206 | 168,989 | | Fresh Produce Sales Revenue | 35,726 | 7,230 | - Sales revenue increased by **7.9%** year-on-year, with fresh produce sales revenue increasing by **394.1%** year-on-year[101](index=101&type=chunk) - The future development direction is to actively expand partnerships with qualified entities and establish long-term, large-volume supply chain collaborations[103](index=103&type=chunk) [Equity Investment Business](index=45&type=section&id=Equity%20Investment%20Business) The equity investment business, primarily conducted through Huifang Rongcui, aims to achieve synergistic development of debt and equity, investing in strategic emerging industries such as advanced manufacturing and semiconductors; as of June 30, 2025, period-end investment principal slightly decreased, with investment income of **RMB 6 thousand**, and future plans to prudently add new investment projects, prioritize post-investment management of existing projects, and accelerate project exits Equity Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Investment Principal Amount at Period End (RMB millions) | 79 | 81 | | Investment Income (RMB thousands) | 6 | (3) | - Investment income shifted from a loss in the prior period to a profit[104](index=104&type=chunk) - The future development direction is to monitor equity investment market policy trends, prudently add new investment projects, and accelerate the exit of existing projects[107](index=107&type=chunk) [Special Asset Investment Business](index=46&type=section&id=Special%20Asset%20Investment%20Business) The special asset investment business, primarily conducted through Qingdao Wanchen, focuses on the acquisition, disposal, and operation of special assets; as of June 30, 2025, period-end investment balances significantly decreased due to the successful exit of two key projects, Guangda Xueke and Hongzhuang Commercial, with interest income of **RMB 3,351 thousand**, and future plans to actively seek target investment opportunities, deepen debt investment through bankruptcy and pre-reorganization, and build a deep cooperation network Special Asset Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Investment Amount at Period End (RMB millions) | 2 | 306 | | Interest Income (RMB thousands) | 3,351 | 16,524 | - Period-end investment balance decreased by **99.3%** year-on-year, and interest income decreased by **79.7%** year-on-year[108](index=108&type=chunk) - Two key projects, Guangda Xueke and Hongzhuang Commercial, successfully exited during the reporting period[109](index=109&type=chunk)[110](index=110&type=chunk) - The future development direction is to actively seek target investment opportunities, deepen debt investment through bankruptcy and pre-reorganization, and build a deep cooperation network[111](index=111&type=chunk) [Insurance Agency Business](index=48&type=section&id=Insurance%20Agency%20Business) The insurance agency business, primarily conducted through Huifang Anda, covers property insurance, credit guarantee insurance, and other types; as of June 30, 2025, both total transaction volume and commission income increased due to vigorous expansion of new businesses, with future plans to strive for new co-insurance partnerships and explore opportunities in healthcare and education sectors Insurance Agency Business Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 746 | 37 | | Commission Income | 173 | 127 | - Total number of transactions increased by **1916.2%** year-on-year, and commission income increased by **36.2%** year-on-year[113](index=113&type=chunk) - The future development direction is to strive for new co-insurance partnerships, explore opportunities in healthcare and education sectors, and introduce a competitive team of agents[114](index=114&type=chunk) [2. Financial Review](index=49&type=section&id=2.%20Financial%20Review) As of June 30, 2025, the Group's operating revenue decreased year-on-year due to macroeconomic conditions and credit policies, yet profit attributable to owners of the Company increased, mainly driven by a reduced proportion of non-controlling interests; while both Inclusive Finance and Ecosystem Finance segments saw a decline in profit before tax, the Headquarters and Other segments experienced an increase in both operating revenue and profit before tax Financial Performance Summary | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 345,814 | 351,380 | | Net Operating Income | 84,206 | 100,522 | | Profit attributable to owners of the Company | 32,762 | 30,609 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | - Operating revenue decreased by **2%** year-on-year, while profit attributable to owners of the Company increased by **7%** year-on-year[116](index=116&type=chunk) [2.2.1 Inclusive Finance Business Segment](index=50&type=section&id=2.2.1%20Inclusive%20Finance%20Business%20Segment) As of June 30, 2025, the Inclusive Finance Business Segment's operating revenue decreased by **8%** year-on-year, and profit before tax decreased by **50%** year-on-year, primarily due to a slowdown in macroeconomic growth, reduced loan scale from lower loan prime rates, and increased expected credit losses Inclusive Finance Business Segment Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 107,945 | 117,293 | | Profit Before Tax | 23,222 | 46,822 | - The decrease in operating revenue was mainly affected by China's economic slowdown and lower loan prime rates[117](index=117&type=chunk) - The decrease in profit before tax was primarily due to lower operating revenue and increased expected credit losses[117](index=117&type=chunk) [2.2.2 Ecosystem Finance Business Segment](index=50&type=section&id=2.2.2%20Ecosystem%20Finance%20Business%20Segment) As of June 30, 2025, the Ecosystem Finance Business Segment's operating revenue increased by **1.6%** year-on-year, primarily driven by higher sales revenue from the supply chain management business; however, profit before tax decreased by **50.4%** year-on-year, mainly due to the transfer of some operating revenue from special asset management business to the Headquarters and Other segments Ecosystem Finance Business Segment Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 230,894 | 227,298 | | Profit Before Tax | 11,726 | 23,645 | - The increase in operating revenue was primarily driven by sales revenue from the supply chain management business[118](index=118&type=chunk) - The decrease in profit before tax was mainly due to the transfer of some operating revenue from special asset management business to the Headquarters and Other segments[119](index=119&type=chunk) [2.2.3 Headquarters and Others](index=51&type=section&id=2.2.3%20Headquarters%20and%20Others) As of June 30, 2025, the Headquarters and Other segments' operating revenue increased by **264.7%** year-on-year, and profit before tax shifted from a loss to a profit, primarily due to the transfer of some operating revenue from special asset management business; the Headquarters will continue to promote refined management to increase revenue and reduce expenses Headquarters and Others Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 40,016 | 10,972 | | Profit/(Loss) Before Tax | 14,592 | (13,310) | - The increase in operating revenue and profit before tax was mainly due to the transfer of some operating revenue from special asset management business[121](index=121&type=chunk) [3. Credit Risk](index=52&type=section&id=3.%20Credit%20Risk) The Group's credit risk exposure is primarily concentrated in loans to customers; as of June 30, 2025, total credit impairment provisions amounted to **RMB 652,373 thousand**, a decrease of **RMB 173,380 thousand** from the prior year-end, mainly due to the transfer of some loans to Stage 3 and the write-off of Stage 3 equity pledge loans, with comprehensive credit risk management and internal control measures in place for all lending businesses - As of June 30, 2025, expected credit loss provisions for loans to customers totaled **RMB 652,373 thousand**, representing approximately **21.55%** of total loans to customers (before provisions)[128](index=128&type=chunk) - The Group's total impairment provisions decreased by **RMB 173,380 thousand** from the prior year-end[128](index=128&type=chunk) - Assets written off during the reporting period amounted to **RMB 114 million**, primarily consisting of Stage 3 equity pledge loans[129](index=129&type=chunk)[130](index=130&type=chunk) - The increase in new litigation-involved secured and unsecured loan balances compared to the prior period reflects the Company's intensified efforts in debt collection and disposal of risky assets[132](index=132&type=chunk) [3.3.1 Credit Risk Management](index=56&type=section&id=3.3.1%20Credit%20Risk%20Management) The Group's lending business is categorized into four units: pawn, technology micro-lending, overseas finance, bridging loan funds, commercial factoring, and finance leasing; each unit has established clear guidelines, policies, and measures for pre-loan assessment, loan granting, post-loan monitoring, and loan recovery to effectively manage credit risk - The Group's lending business primarily includes four business units: pawn, technology micro-lending, overseas finance, bridging loan funds, commercial factoring, and finance leasing[133](index=133&type=chunk) - Each business unit has established clear guidelines, policies, and measures for credit risk assessment, loan granting, post-loan monitoring, and risk management[133](index=133&type=chunk) [3.3.1.1 Pawn Business, Micro-loan Business, Overseas Financial Business](index=56&type=section&id=3.3.1.1%20Pawn%20Business%2C%20Micro-loan%20Business%2C%20Overseas%20Financial%20Business) Credit risk management for these business units covers both secured and unsecured loans, with pre-loan assessment including due diligence and credit evaluation, treating renewed loans as new applications; loan granting follows clear approval standards and disbursement processes, while post-loan monitoring and recovery procedures are stringent, supported by a comprehensive management system for documentation and early warnings - Pre-loan assessment for secured loans includes verifying customer identity, financial status, collateral appraisal reports, and on-site inspections[136](index=136&type=chunk) - Due diligence for unsecured loans includes verifying basic customer information, financial information, operating data, and guarantor information[146](index=146&type=chunk)[147](index=147&type=chunk) - All loan renewals are treated as new loan applications and assessed using the same procedures[139](index=139&type=chunk)[149](index=149&type=chunk) [3.3.1.2 Bridging Loan Fund Business](index=61&type=section&id=3.3.1.2%20Bridging%20Loan%20Fund%20Business) The bridging loan fund business provides short-term loans to SMEs to alleviate cash flow pressure from 'repay first, then borrow again' policies; pre-loan assessment includes due diligence and credit evaluation, with clear approval standards for loan granting, and post-loan monitoring involves comprehensive tracking, early warning mechanisms, and recovery plans for overdue clients - The bridging loan fund business aims to alleviate SMEs' cash flow pressure from 'repay first, then borrow again' policies[157](index=157&type=chunk) - The credit risks undertaken by the Group in the bridging loan fund business include changes in bank loan renewal conditions, SMEs not meeting renewal criteria, misappropriation of loan funds, and overdue repayments[161](index=161&type=chunk) - Post-loan monitoring tracks and supervises the six stages of the bridging loan cycle and establishes an early warning mechanism[166](index=166&type=chunk) [3.3.1.3 Commercial Factoring Business](index=64&type=section&id=3.3.1.3%20Commercial%20Factoring%20Business) Credit risk management for commercial factoring involves due diligence and credit evaluation of clients and debtors, focusing on the authenticity, legality, and recoverability of accounts receivable; post-loan monitoring through regular collection of financial statements and on-site investigations, with immediate collection measures taken for unredeemed accounts receivable or debtor defaults - Due diligence includes collecting accounts receivable information, verifying registration results, and reviewing business licenses and financial statements[169](index=169&type=chunk) - Credit evaluation categorizes clients and debtors into manufacturing (or service-oriented) enterprises and engineering project enterprises, with different assessment standards applied[170](index=170&type=chunk) - Post-loan monitoring is conducted through monthly or quarterly collection of client financial statements, on-site investigations, and credit record monitoring[175](index=175&type=chunk) [3.3.1.4 Finance Lease Business](index=66&type=section&id=3.3.1.4%20Finance%20Lease%20Business) Credit risk management for finance leasing includes due diligence and credit evaluation of clients, potentially requiring additional collateral or guarantees for loan granting; post-loan monitoring involves regular review of lessee's operating conditions and financial reports, with the right to demand payment or dispose of leased assets in case of rental payment defaults or non-fulfillment of obligations - Credit evaluation comprehensively considers the client's industry and reputation, cash flow, solvency, liquidity, value, and realizability of leased assets[180](index=180&type=chunk) - Depending on the client's creditworthiness, the lessee and third parties may be required to provide additional collateral or guarantees[182](index=182&type=chunk) - Post-loan monitoring regularly reviews changes in the lessee's operating conditions, solvency, creditworthiness, and debt obligations[185](index=185&type=chunk) [3.3.2 Internal Control](index=68&type=section&id=3.3.2%20Internal%20Control) The Group has established a comprehensive risk management system covering all employees, products, and processes, including separation of credit assessment and loan disbursement, multi-level loan approval policies, post-loan monitoring procedures, an early warning system, and policies for managing defaulted debts and bad debt write-offs - Multi-level loan approval policies are established to clarify responsibilities for different positions, promoting integrity and accountability among front, middle, and back-office staff[188](index=188&type=chunk) - Post-loan monitoring and management procedures are implemented for continuous monitoring and management of credit risk and the entire loan process[188](index=188&type=chunk) - A comprehensive management system with an early warning system is established to ensure accurate and timely recording of each transaction and identification of defaulted loans[188](index=188&type=chunk) [4. Capital Expenditure](index=71&type=section&id=4.%20Capital%20Expenditure) For the six months ended June 30, 2025, the Group's capital expenditure decreased to **RMB 4,300 thousand** from **RMB 6,581 thousand** in the prior period, primarily including property, plant and equipment, intangible assets, and investment properties - Capital expenditure for the six months ended June 30, 2025, was **RMB 4,300 thousand**, a **34.6%** year-on-year decrease[196](index=196&type=chunk) [5. Foreign Exchange Exposure](index=71&type=section&id=5.%20Foreign%20Exchange%20Exposure) For the six months ended June 30, 2025, the Group incurred net exchange losses of **RMB 396 thousand**, an increase from **RMB 266 thousand** in the prior period; as the Group primarily conducts business transactions in RMB, it does not face significant foreign exchange risk and has not undertaken any related hedging - For the six months ended June 30, 2025, the Group incurred net exchange losses of **RMB 396 thousand**, a **48.9%** year-on-year increase[197](index=197&type=chunk) - The Group primarily conducts business transactions in RMB, thus not facing significant foreign exchange risk and not undertaking any hedging[197](index=197&type=chunk) [6. Pledged Assets](index=71&type=section&id=6.%20Pledged%20Assets) As of June 30, 2025, the Group's land use rights and Zhonghui Financial Building were pledged as collateral for non-current bank borrowings, and **RMB 20.0 million** in structured deposits were pledged as collateral for **RMB 19.0 million** in bank borrowings - Land use rights and Zhonghui Financial Building are pledged as collateral for non-current bank borrowings of **RMB 164.3 million**[198](index=198&type=chunk) - Structured deposits of **RMB 20.0 million** are pledged as collateral for bank borrowings of **RMB 19.0 million**[198](index=198&type=chunk) [7. Significant Investments, Acquisitions and Disposals](index=71&type=section&id=7.%20Significant%20Investments%2C%20Acquisitions%20and%20Disposals) During the reporting period, the Group completed the acquisition and disposal of Guangda Jiaoke and Hongzhuang Commercial, which were commercially aimed at providing financing solutions to customers, generating consulting service income and interest income, and creating value for the company and shareholders - The Group completed the acquisition and disposal of Guangda Jiaoke, generating consulting service income of **RMB 3 million** and interest income of **RMB 3.3 million**[202](index=202&type=chunk) - The Group completed the acquisition and disposal of Hongzhuang Commercial, whose commercial substance was to provide financing to Suzhou Xinwei for the acquisition of Hongzhuang Commercial[204](index=204&type=chunk)[205](index=205&type=chunk) - The Board believes these acquisitions and disposals provided opportunities for the Group to generate investment returns and offer financing solutions to customers, achieving a win-win outcome[202](index=202&type=chunk)[205](index=205&type=chunk) [8. Contingent Liabilities, Contractual Obligations, and Cash Flow Analysis](index=74&type=section&id=8.%20Contingent%20Liabilities%2C%20Contractual%20Obligations%2C%20and%20Cash%20Flow%20Analysis) As of June 30, 2025, the Group had no significant contingent liabilities, with total capital commitments of **RMB 57,868 thousand**; during the reporting period, net cash inflow from operating activities was **RMB 261,486 thousand**, net cash outflow from investing activities was **RMB 108,449 thousand**, and net cash outflow from financing activities was **RMB 199,313 thousand**, resulting in a net decrease in cash and cash equivalents - The Group has no significant contingent liabilities[206](index=206&type=chunk) Cash Flow Summary | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Inflow/(Outflow) from Operating Activities | 261,486 | (207,990) | | Net Cash (Outflow)/Inflow from Investing Activities | (108,449) | 3,772 | | Net Cash (Outflow)/Inflow from Financing Activities | (199,313) | 189,441 | | Net Decrease in Cash and Cash Equivalents | (46,276) | (14,777) | - Net cash inflow from operating activities was primarily due to a decrease in loans to customers[209](index=209&type=chunk) - Net cash outflow from investing activities was mainly due to reduced investment activities amidst a macroeconomic downturn[210](index=210&type=chunk) - Net cash outflow from financing activities was primarily due to a decrease in new borrowings and an increase in repayment of borrowings[211](index=211&type=chunk) [9. Human Resources and Employee Benefits](index=76&type=section&id=9.%20Human%20Resources%20and%20Employee%20Benefits) As of June 30, 2025, the Group had **153** full-time employees, a decrease of **3** from December 31, 2024; staff salaries and benefits amounted to **RMB 15,542 thousand**, a year-on-year decrease of **RMB 5,084 thousand**, with the Group committed to human resource optimization, providing training, and complying with China's social security and housing provident fund responsibilities - As of June 30, 2025, the number of full-time employees was **153**, a decrease of **3** from December 31, 2024[212](index=212&type=chunk) - Staff salaries and benefits amounted to **RMB 15,542 thousand**, a year-on-year decrease of **RMB 5,084 thousand**[212](index=212&type=chunk) - The Group continues to optimize human resources and provides training to promote employees' personal and professional development[212](index=212&type=chunk) [10. Future Plans for Significant Investments](index=76&type=section&id=10.%20Future%20Plans%20for%20Significant%20Investments) Aside from disclosed capital commitments, the Group has no other significant investment and capital asset acquisition plans but will continue to seek new business development opportunities, with investments funded by internal resources and bank financing - Aside from disclosed capital commitments, the Group has no other significant investment and capital asset acquisition plans[214](index=214&type=chunk) - The Group will continue to seek new business development opportunities, with investments funded by internal resources and bank financing[214](index=214&type=chunk) [11. Events After Reporting Period](index=76&type=section&id=11.%20Events%20After%20Reporting%20Period) As of the date of this announcement, no significant events have occurred after the reporting period, other than those already disclosed - No significant events occurred after the reporting period and up to the date of this announcement[215](index=215&type=chunk) [Future Outlook](index=77&type=section&id=Future%20Outlook) The Group will continue to implement a dual-driven strategy of inclusive finance and ecosystem finance; the Inclusive Finance Business Segment will deepen due diligence, strictly control risks, expand scale, and maintain stable development of art investment business; the Ecosystem Finance Business Segment will intensify commercial factoring expansion, strengthen post-loan management for finance leasing,

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的內容概不負責，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份內容而產生或因倚賴該等內容而引致的任何損 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） 董事會會議召開日期 中國匯融金融控股有限公司（「本公司」）董事會（「董事會」）茲通告謹定於二零二五年 八月二十九日（ 星期五 ）舉行本公司董事會會議，以考慮及通過本公司及其附屬公司 截至二零二五年六月三十日止的六個月中期業績，及派發中期股息（ 如有 ），以及處 理其他事項。 承董事會命 中國匯融金融控股有限公司 吳敏 主席 香港，二零二五年八月十九日 於本公告日期，本公司執行董事為吳敏先生、邱蔚先生、張長松先生及姚文軍先生；本公司非執行董事為毛 竹春先生及鄧林燕女士；及本公司獨立非執行董事為謝日康先生、馮科先生及梁劍虹先生。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國匯融金融控股有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01290 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | ...

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].

Financial Performance - Operating income for the six months ended June 30, 2024, was RMB 351,380,000, an increase of 11% compared to RMB 317,157,000 for the same period in 2023[1]. - Profit attributable to equity holders of the company was RMB 30,609,000, representing a 4% increase from RMB 27,619,000 in the previous year[2]. - Basic earnings per share for the period was RMB 0.028, up from RMB 0.025, reflecting an increase of 12%[4]. - Interest income for the six months was RMB 166,677,000, compared to RMB 128,653,000 in the same period last year[2]. - The company reported a net investment income of RMB 1,218,000, compared to a loss of RMB 46,136,000 in the previous year[2]. - External operating income for the six months ended June 30, 2024, was 317,157 million, compared to 205,941 million in the same period of 2023, representing a growth of approximately 54%[18]. - The company achieved operating revenue of RMB 351,380 thousand, an increase from RMB 317,157 thousand year-over-year, primarily due to increased interest income from pawn, financing leasing, and special asset management businesses[108]. - Net profit attributable to equity holders reached RMB 30,609 thousand, up from RMB 27,619 thousand year-over-year, driven by the rise in operating revenue[108]. Assets and Liabilities - Total assets as of June 30, 2024, reached RMB 3,544,257,000, a 7% increase from RMB 3,300,657,000 as of December 31, 2023[5]. - Total liabilities increased by 21% to RMB 1,369,219,000 from RMB 1,135,039,000 in the previous period[6]. - The company’s total equity increased slightly to RMB 2,175,038,000 from RMB 2,165,618,000, reflecting a stable financial position[6]. - Cash and cash equivalents decreased by 13% to RMB 124,268,000 from RMB 142,427,000[1]. - The total assets for the Inclusive Finance Division were RMB 1,620,257,000, while the Ecological Finance Division reported RMB 1,354,640,000, resulting in total assets of RMB 3,544,257,000[17]. - The total liabilities for the Inclusive Finance Division were RMB (287,941,000), and the Ecological Finance Division reported RMB (650,246,000), leading to total liabilities of RMB (1,369,219,000)[17]. Business Segments - The company operates primarily through two business segments: Inclusive Finance and Ecological Finance, focusing on providing loan services in China[15]. - The external operating income for the Inclusive Finance Division was RMB 117,293,000, while the Ecological Finance Division reported RMB 227,147,000, contributing to a total external operating income of RMB 351,380,000 for the six months ended June 30, 2024[17]. - The profit before tax for the Ecological Finance Division was RMB 46,822,000, and the Inclusive Finance Division reported RMB 23,645,000, leading to a total profit before tax of RMB 57,157,000[17]. - The Inclusive Finance Division reported operating revenue of RMB 117,293 thousand, a year-over-year increase from RMB 106,039 thousand, attributed to increased collateral loan amounts[109]. - The Ecological Finance Division generated operating revenue of RMB 227,298 thousand, up from RMB 206,202 thousand year-over-year, due to expanded business scale in commercial factoring and financing leasing[111]. Credit and Loans - Loans granted to customers amounted to RMB 2,484,041,000, an 8% increase from RMB 2,309,546,000[1]. - The aging analysis of customer loans shows that loans overdue for less than three months amounted to RMB 72,426 million, while those overdue for three months to one year totaled RMB 115,672 million[44]. - The expected credit loss provision for loans was RMB 4,769 million, compared to RMB 4,374 million in the previous year, indicating an increase of about 9%[38]. - The total expected credit loss provision for financial assets was RMB 3,104,178 thousand, with a significant portion attributed to collateralized loans[116]. - The expected credit loss provision for loans granted to customers is RMB 842,022 thousand, representing approximately 25.32% of the total loans granted before provisions[121]. Investments and Acquisitions - The company reported a net loss from the disposal of debt assets of (127) million for the six months ended June 30, 2024, compared to a gain of 1,015 million in the same period of 2023[24]. - The acquisition of Guangda Education was completed, with its fair value as a financial asset amounting to RMB 212.703 million, representing 6.0% of the company's total assets[171]. - The company successfully auctioned Zhongzhu Plaza for RMB 88.4 million, with the purchase price including a deposit of RMB 17.68 million[173]. - The company aims to focus on the successful exit of two major projects, Guangda Education and Zhongzhu Plaza, while actively seeking target investment opportunities[98]. Risk Management - The company has established clear guidelines and policies for credit risk assessment and management across its lending business units[124]. - The company has increased litigation efforts in response to a rise in economically distressed customers[123]. - The company maintains a prudent financial policy to ensure stable cash flow and monitor customer credit assessments[167]. - The company has implemented comprehensive internal control measures for its pawn business, including pre-loan and post-loan management strategies[74]. Cash Flow and Financing - The net cash outflow from operating activities during the reporting period was RMB 207,990 thousand, primarily due to an increase in loans granted to customers and financial assets held under resale agreements[179]. - The net cash inflow from financing activities was RMB 189,441 thousand, primarily due to increases in bank loans and borrowings from other companies[181]. - As of June 30, 2024, the group's cash and cash equivalents amounted to RMB 124,268 thousand, a decrease of RMB 14,777 thousand compared to the end of the previous year[178]. - The company has no undrawn credit facilities as of June 30, 2024, indicating effective management of available credit[165]. Corporate Governance - The company has adhered to all principles and code provisions of the Corporate Governance Code during the reporting period[188]. - The company has adopted the Standard Code for securities trading by directors and confirmed compliance during the six months ending June 30, 2024[189]. - The independent auditor has not yet reviewed the accounting information contained in the announcement, but the audit committee and management have discussed internal controls and financial reporting matters[191].