Company Overview - Guangdong Join-Share Financing Guarantee Investment Co., Ltd. is a leading financing guarantee services provider in Guangdong province, focusing on credit-based financing solutions for SMEs since its establishment in 2003[4]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province[4]. - As of June 2014, Foshan Join-Share Micro Credit Co., Ltd. was consolidated into the Group, enhancing its micro-lending capabilities[5]. - The company has established strong cooperative relationships with various banks and non-bank financial institutions, which helps diversify customer referrals and reduce credit risks[6]. - The company has an "AA" corporate rating from CSCI Pengyuan Credit Rating Co. Ltd., indicating a stable outlook[6]. - The share capital comprises Domestic Shares and H Shares, with H Shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 23, 2015[7]. - The company aims to ensure management independence and has implemented prudent corporate governance since its establishment[6]. - The management team has substantial expertise in finance, banking, accounting, and legal industries, contributing to the company's strong market position[6]. - The company does not have a controlling shareholder, which supports its governance structure and operational independence[6]. Financial Performance - Total revenue for the year ended December 31, 2024, was approximately RMB 359.03 million, representing a decrease of approximately 7.60% compared to the previous year[27]. - Profit for the year was approximately RMB 42.82 million, with a net profit margin of 12.42%[27]. - Profit before taxation amounted to approximately RMB 66.85 million, reflecting a decrease of approximately 11.23% compared to last year[27]. - Profit attributable to equity shareholders of the Company was approximately RMB 42.18 million, representing an increase of approximately 9.84% compared to the previous year[27]. - The Board recommended a final dividend of RMB 0.019 per share for the year ended December 31, 2024[27]. - Operating expenses for the year were RMB 142.17 million, slightly decreased from RMB 143.38 million in the previous year[26]. - Total assets increased to RMB 3,884.59 million from RMB 3,788.24 million in the previous year[26]. - Total liabilities rose to RMB 1,523.50 million from RMB 1,432.49 million in the previous year[26]. - The return on net assets was 1.8%, unchanged from the previous year[26]. - The return on assets was 1.1%, consistent with the previous year[26]. Economic Context - In 2024, China's GDP reached RMB134.9084 trillion, marking a 5.0% year-on-year growth, maintaining its position as the world's second-largest economy[43]. - The added value of the primary industry was RMB9.1414 trillion, a 3.5% year-on-year increase; secondary industry was RMB49.2087 trillion, an increase of 5.3%; and tertiary industry was RMB76.5583 trillion, with a 5.0% growth[43]. - Quarterly GDP growth rates were 5.3% in Q1, 4.7% in Q2, 4.6% in Q3, and 5.4% in Q4, indicating a V-shaped recovery[43]. Business Strategy and Development - The Group's financing guarantee business license was renewed, and it has optimized its business structure and innovated its service model to enhance corporate governance[47]. - The Group aims to improve financing accessibility and reduce funding costs for SMEs, thereby supporting innovation and business expansion[48]. - The "town-street model" was recognized as a typical case of inclusive financial services in 2024 by the China Association for Small & Medium Commercial Enterprises[37]. - The Group has focused on green finance, elderly care finance, and value-added services as new business directions[38]. - A new five-year development plan is being formulated to innovate the business model and optimize management structure[39]. - The Group has established a systematic investment and financing service platform for SMEs, enhancing financing efficiency and reducing costs[44]. - The Group's subsidiaries received recognition in the "Spotlight Programme" for emerging and pioneering enterprises, enhancing the company's brand influence[40]. Guarantee and Loan Operations - As of December 31, 2024, the Group's total outstanding guarantee was approximately RMB 7,533.25 million, a decrease from RMB 9,792.61 million as of December 31, 2023, representing a reduction of approximately 23%[55][56]. - For the year ended December 31, 2024, the net guarantee fee income was approximately RMB 223.77 million, down from RMB 245.48 million in the previous year, indicating a decline of about 8.8%[55][56]. - The balance of entrusted loans as of December 31, 2024, was approximately RMB 385.46 million, slightly decreased from RMB 395.57 million as of December 31, 2023, reflecting a reduction of about 2.8%[61][58]. - The top five customers of entrusted loans represented approximately 47.32% of the total remaining balance as of December 31, 2024[61]. - The monthly fixed interest rate charged for entrusted loans ranged from 0.5% to 1.15%, consistent with the previous year[57][58]. - The Group aims to enhance financing accessibility for SMEs and reduce their financing costs, promoting investment and innovation within the sector[49]. - The Group has received approval for financing guarantee business operations, establishing a solid foundation for sustainable development[49]. - The Group is focused on adjusting its business structure and strengthening internal management to support long-term growth[49]. - The Group's vision is to become a systematic investment and financing service provider for small and micro enterprises[49]. Micro-lending Operations - The Group's micro-lending balance as of December 31, 2024, was approximately RMB727.41 million, an increase from RMB580.31 million as of December 31, 2023, representing a growth of approximately 25.38%[63]. - The monthly fixed interest rate for micro-lending remained stable, ranging from 0.55% to 2.0% for both the years ended December 31, 2024, and December 31, 2023[63]. - The Group's net interest income for the year ended December 31, 2024, was approximately RMB94.85 million, reflecting an increase of approximately 8.52% compared to RMB87.40 million for the year ended December 31, 2023[67]. - The top five customers accounted for approximately 10.31% of the total micro-lending balance as of December 31, 2024[65]. - The Group's micro-lending operations are conducted through its subsidiary, Foshan Micro Credit, which is approved by the Guangdong Financial Supervisory Authority[63]. - The maximum amount of micro-lending that the Group can provide is capped at RMB15.00 million due to regulatory limits[63]. Risk Management - The Group employs a comprehensive internal control policy to manage risks associated with its guarantee business, including post-transaction inspections and regular monitoring of customer profiles[68]. - Special post-transaction supervision is conducted monthly for projects with operational risks or high cumulative guarantee liabilities[71]. - The interest rates for individual loans within the micro-lending portfolio vary based on borrower creditworthiness and other factors[66]. - The Group's micro-lending business primarily targets SMEs, individual business proprietors, and individuals in the Foshan area[63]. - The company conducts risk screening and adopts stricter supervision for high-risk industries and projects affected by macroeconomic conditions[73]. - Risk profiles are classified into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," based on various financial and repayment criteria[75]. - The company initiates collection processes for projects with significant hidden risks or risk exposure, including paying outstanding loan amounts to banks in case of customer defaults[76]. - For entrusted loans, the project manager prepares investigation reports and collects collateral-related materials, with loan approvals capped at 6% of the group's net assets[78]. - The company adjusts project supervision levels and review frequencies based on the classified risk profiles, enhancing focus on "special-attention" projects[75]. - Collateral management includes both tangible and intangible assets, with regular inspections and appraisals conducted for registered properties[74]. - The company collaborates with customers to develop alternative repayment plans when customers indicate an intention to repay[76]. - Legal proceedings may be initiated against customers in disputes over collateral rights, with the company seeking court orders to enforce guarantee agreements[76]. - The risk management department works closely with the business department to develop project due date guidance based on customer performance[73]. - The company employs differentiated risk management strategies to enhance supervision on higher-risk projects, particularly those classified as "substandard," "suspicious," or "loss"[75]. - The company initiates post-loan management procedures to identify potential repayment difficulties for entrusted loans upon expiry[79]. Management and Governance - The total number of staff as of December 31, 2024, was 291, with 87% holding a bachelor's degree or above[173]. - Mr. Wu has approximately 22 years of experience in the finance industry, having held various managerial positions in multiple companies[180]. - From May 2001 to May 2003, Mr. Wu served as the general manager at Guangdong Yinda Financing Guaranty Investment Group Co., Ltd., focusing on business operations[181]. - Mr. Huang has over 10 years of experience in financial management, with roles in various sections of the Foshan Finance Bureau[186]. - Mr. Huang was appointed as a non-executive Director on June 18, 2024[185]. - Mr. Zhao Wei was appointed as a non-executive Director on January 29, 2021[190]. - Mr. Huang obtained his bachelor's degree in economics, majoring in Finance (International Finance), in June 2003[187]. - Mr. Wu received his bachelor's degree in economics from Anhui Finance and Trading College in July 1983, majoring in business accounting[182]. - Mr. Wu has been recognized with multiple awards, including the "Special Contribution Award for the Construction of China's Social Credit System" in 2022[184]. - Mr. Huang served as the head of the finance section of Foshan Finance Bureau from December 2020 to February 2023[186]. - Mr. Wu was elected as a representative of the 13th National People's Congress in 2018[184]. - Mr. Zhao has over 29 years of experience in the finance industry and currently serves as the chief officer of the strategic investment department at Foshan Financial[191]. - Mr. Pan has over 25 years of experience in business administration and was appointed as a non-executive Director on June 18, 2024[196]. - Ms. Feng was appointed as a non-executive Director on June 18, 2024, after previously serving as a Supervisor from June 6, 2018, to June 5, 2021[200]. - Mr. Zhao holds the PRC Certified Public Accountant National Unified Exam Certificate and the Certified Public Valuer Unified Exam Certificate[194]. - Mr. Pan obtained his Master of Business Administration degree from Macau University of Science and Technology in November 2022[197]. - Mr. Zhao has held various positions in financial institutions, including a project manager at Guangdong Guang Xin Certified Public Accountants and a senior merger and acquisition advisor[193]. - Mr. Pan served as the vice chairman and general manager of Guangdong Real Faith Enterprises Group Co., Ltd. from 1996 to 2006[196]. - Mr. Zhao has been with Foshan Financial since July 2017, overseeing general operations in the strategic investment department[191]. - Ms. Feng's previous role as a Supervisor indicates her familiarity with the company's governance and operations[200]. - Mr. Pan's extensive experience in business administration positions him well for his role as a non-executive Director[198].

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，並明確表示概不就因本公告全部或任何部分內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Guangdong Join-Share Financing Guarantee Investment Co., Ltd.* 廣東中盈盛達融資擔保投資股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1543） 截至2024年12月31日止年度 年度業績公佈 截至2024年12月31日止年度業績摘要 廣東中盈盛達融資擔保投資股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公 佈本公司及其子公司（統稱「本集團」）截至2024年12月31日止年度的經審核年度業績及截 至2023年12月31日止年度的比較數據。本報告應與下文管理層討論與分析一併閱讀。 – 1 – • 總收益約為人民幣359.03百萬元（包括收益約人民幣344.79百萬元及其他收益約人 民幣14.24百萬元），較去年減少約7.60%。 • 年內利潤及淨利潤率分別約為人民幣42.82百萬元及12.42%。 • 稅前 ...

Economic Performance - In the first half of 2024, China's GDP reached RMB 61.6836 trillion, representing a year-on-year increase of 5.0%[9] - The contribution rate of final consumption expenditure to economic growth was 60.5%, driving GDP growth by 3.0 percentage points[9] - The primary, secondary, and tertiary industries accounted for 5.0%, 38.3%, and 56.7% of GDP, respectively, indicating stable growth in the tertiary sector[9] - Gross capital formation contributed 1.3 percentage points to economic growth in the first half of 2024[9] - In the first half of 2024, China's GDP reached RMB 616,836 million, with a year-on-year growth of 5.0%[11] - The contribution rate of final consumption expenditure to economic growth in the first half of 2024 was 60.5%, driving GDP growth by 3.0 percentage points[11] - The total capital formation contributed 1.3 percentage points to economic growth in the same period[11] - By the end of Q2 2024, the balance of loans for small and micro-sized enterprises reached RMB 78 trillion, with inclusive loans of RMB 32 trillion showing a year-on-year increase of 17.1%[88] - China's economy is expected to achieve more robust growth in the second half of 2024, driven by domestic demand recovery and government measures[97] SME Development - The Small and Medium Enterprises Development Index was 89.0 in Q2 2024, a decrease of 0.3 points from Q1 2024, but still higher than the corresponding period in 2022[10] - The company focuses on providing precise and efficient services for SMEs to promote healthy growth and high-quality economic development[10] - The Group aims to maintain a focus on its core business while ensuring sufficient attention to risk management as it pursues high-quality development[12] - The Group has transformed into a credit-centered, industry-based, and finance-driven comprehensive service platform to support SMEs[12] - The Group continues to provide customized solutions to help SMEs overcome challenges and seize development opportunities[12] - The Group plans to innovate business models and diversify financing products to better support SMEs[96] - The financing guarantee industry has rapidly developed, enhancing risk prevention capabilities and alleviating financing difficulties for SMEs[96] Financial Performance - For the six months ended June 30, 2024, the net guarantee fee income was approximately RMB 116.92 million, remaining relatively stable compared to RMB 105.88 million for the same period in 2023[16] - The Group's net interest income was approximately RMB 47.12 million, reflecting an increase of approximately 8.77% compared to RMB 43.32 million for the same period in 2023[22] - The Group's total guarantee fee income increased by approximately RMB 11.04 million, or approximately 10.43%, from approximately RMB 105.88 million for the six months ended 30 June 2023 to approximately RMB 116.92 million for the six months ended 30 June 2024[56][58] - The Group's profit for the period decreased by approximately RMB 2.51 million, or approximately 9.16%, to approximately RMB 24.89 million for the six months ended 30 June 2024 from approximately RMB 27.40 million for the corresponding period in 2023[73] - The profit attributable to equity shareholders of the Company increased by approximately RMB 1.82 million, or approximately 9.19%, to approximately RMB 21.62 million for the six months ended June 30, 2024 from approximately RMB 19.80 million for the corresponding period in 2023[77] - The Group's net profit margin decreased to approximately 14.04% for the six months ended June 30, 2024 from approximately 16.97% for the corresponding period in 2023[77] - The Group's other revenue decreased by approximately RMB 2.79 million, or approximately 31.38%, to approximately RMB 6.10 million for the six months ended 30 June 2024[60] - The Group's share of losses of associates increased from approximately RMB 4.06 million for the six months ended 30 June 2023 to approximately RMB 7.00 million for the six months ended 30 June 2024[61] - Provisions charged for guarantee losses increased to approximately RMB 21.20 million for the six months ended 30 June 2024 from approximately RMB 13.21 million for the corresponding period in 2023[62] - Impairment losses increased by approximately RMB 20.79 million, or approximately 52.94%, to approximately RMB 60.06 million for the six months ended 30 June 2024[68] Risk Management - The company has implemented internal control policies to manage business risks, including post-transaction inspection procedures to identify potential repayment difficulties[23] - Regular post-transaction supervision is conducted every half month to six months based on the risk profile of the project[26] - Special post-transaction supervision is performed monthly for projects with operational risks or high cumulative guarantee liabilities[27] - Risk screening is conducted to promote healthy business development and adjust supervision frequency based on macroeconomic changes[29] - Management procedures for collateral include regular on-site inspections and appraisals for tangible assets[30] - The company classifies customer risk profiles into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," based on various financial metrics and repayment behaviors[32][34] - The company initiates collection processes when assessing significant hidden risks or risk exposure in projects, ensuring timely recovery actions[33][35] - The company enhances supervision on "special-attention" projects and focuses on collections from "substandard," "suspicious," or "loss" projects[32][34] - Risk management adjustments are made based on customer performance and significant anomalies affecting repayment, with increased supervision frequency as needed[40] - The company employs legal measures to enforce rights to collateral when customer business prospects deteriorate or repayment intentions are absent[35][36] Corporate Governance - The Company has complied with the Corporate Governance Code, except for a deviation regarding the roles of Chairman and President[169] - The Company is committed to enhancing its corporate governance practices to ensure compliance with the Corporate Governance Code[169] - The audit committee consists of five members, including independent non-executive directors, ensuring high standards of corporate governance[171] - The company has confirmed full compliance with the Model Code for securities transactions during the reporting period[173] - The Company continues to monitor and report on substantial shareholders' interests as required by the Stock Exchange[152] Capital Structure and Investments - The Group's outstanding capital commitments related to guarantees issued to customers amounted to approximately RMB 8,711.83 million as of 30 June 2024, down from RMB 9,792.61 million as of 31 December 2023[80] - The Group's capital expenditures amounted to approximately RMB 0.97 million for the six months ended 30 June 2024, down from RMB 2.46 million for the same period in 2023[79] - The Group's liquidity and capital requirements are primarily related to capital investments in subsidiaries, micro-lending, and maintaining security deposits[108] - The Group's capital structure management focuses on balancing shareholder returns with a sound capital position, adjusting based on economic conditions[102] - The Group has developed a comprehensive financial service system to support SMEs, enhancing their potential and innovation[101] Shareholder Information - As of June 30, 2024, the total issued share capital of the Company is 1,560,792,687 shares, comprising 1,006,429,353 Domestic Shares and 554,363,334 H Shares[147] - Fojin Hongkong Limited is the largest shareholder with 164,164,000 H Shares, accounting for approximately 29.61% of the H Shares and 10.52% of the total share capital[153] - Foshan Financial Investment Holding Co., Ltd. also holds 239,854,838 Domestic Shares, which is about 23.83% of the Domestic Shares and 15.37% of the total share capital[153] - As of June 30, 2024, no Directors, Supervisors, or chief executives of the Company had any interests or short positions in shares or debentures of the Company or its associated corporations[148] Employee Information - The total staff count as of June 30, 2024, was 289, with 87% holding a bachelor's degree or above, reflecting a focus on employee quality[141] - Staff costs for the six months ended June 30, 2024, amounted to approximately RMB 37.42 million, a decrease from RMB 48.38 million in the same period of 2023[141] - The Group's employee training program is aimed at enhancing talent retention and loyalty, with annual training provided for new employees[141]

Financial Performance - For the first half of 2024, the company's revenue was approximately RMB 177.21 million, an increase of about 9.75% compared to the same period in 2023[1]. - The company's profit before tax for the first half of 2024 was approximately RMB 39.51 million, reflecting an increase of about 4.05% year-on-year[1]. - The profit attributable to equity holders of the company for the first half of 2024 was approximately RMB 21.62 million, up by about 9.20% from the same period in 2023[1]. - The total comprehensive income for the first half of 2024 was RMB 22.10 million, compared to RMB 28.75 million in the same period of 2023[3]. - The company reported a pre-tax profit of RMB 60,061,000 for the six months ended June 30, 2024, up from RMB 39,265,000 in the same period of 2023, reflecting a growth of 53.0%[13]. - The group's profit before tax increased by approximately RMB 1.54 million or about 4.06% to approximately RMB 39.51 million for the six months ended June 30, 2024, compared to approximately RMB 37.97 million for the same period in 2023[96]. - The group's profit for the period decreased by approximately RMB 2.51 million or about 9.16% to approximately RMB 24.89 million for the six months ended June 30, 2024, compared to approximately RMB 27.40 million for the same period in 2023[98]. - The net profit margin decreased from approximately 16.97% in the same period of 2023 to approximately 14.04% for the six months ended June 30, 2024[99]. Revenue Sources - The net income from guarantee fee revenue for the first half of 2024 was RMB 116.92 million, compared to RMB 105.88 million in the same period of 2023[2]. - Guarantee fee income increased to RMB 119,576,000 for the six months ended June 30, 2024, from RMB 108,571,000 in the same period of 2023, representing a growth of 10.5%[10]. - Net interest income rose to RMB 47,122,000 for the six months ended June 30, 2024, compared to RMB 43,321,000 for the same period in 2023, marking an increase of 6.5%[10]. - Small loan business interest income increased by approximately RMB 4.31 million or 14.61% to approximately RMB 33.82 million for the six months ended June 30, 2024, compared to RMB 29.51 million for the same period in 2023[87]. Assets and Liabilities - The total assets as of June 30, 2024, were RMB 3,710.17 million, a decrease from RMB 3,788.24 million as of December 31, 2023[4]. - The total liabilities as of June 30, 2024, were RMB 1,371.09 million, down from RMB 1,432.49 million at the end of 2023[4]. - The company's cash and bank deposits as of June 30, 2024, were RMB 850.74 million, a decrease from RMB 1,222.78 million as of December 31, 2023[4]. - The total amount of accounts payable decreased to RMB 12,803,000 as of June 30, 2024, from RMB 20,367,000 as of December 31, 2023, indicating a decline of 37.0%[53]. - The company's total liabilities related to guarantees decreased to RMB 270,639,000 as of June 30, 2024, from RMB 265,754,000 as of December 31, 2023, indicating a slight increase of 1.3%[51]. Employee Costs - The company incurred employee costs of RMB 37,424,000 for the six months ended June 30, 2024, down from RMB 48,376,000 in the same period of 2023, a decrease of 22.7%[14]. - As of June 30, 2024, the total number of employees in the company is 289, a decrease from 294 as of December 31, 2023[127]. Dividends - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[1]. - The company declared a final cash dividend of RMB 31.22 million for the fiscal year ending June 30, 2024[62]. - The final cash dividend of RMB 54.63 million was paid on July 7, 2023, for the dividend declared on June 28, 2023[63]. Risk Management - The company conducts monthly regulatory oversight for projects with operational risks and special post-monitoring for high-risk projects[78]. - Risk assessment is performed based on macroeconomic changes, with stricter standards for high-risk industries and projects[78]. - The company categorizes post-project risks into five levels, adjusting monitoring levels and strategies accordingly[79]. - In case of customer default, the company must pay the outstanding principal and accrued interest to the lending bank[79]. - The company initiates collection procedures after customer defaults, including contacting customers and assessing their repayment capabilities[82]. Investments and Acquisitions - The company has not made any significant investments or acquisitions during the six months ended June 30, 2024[126]. - The company’s capital expenditure commitment includes a contract for the purchase of office buildings for a total consideration of RMB 28,605.3 million, with RMB 20,000,000 already paid as of June 30, 2024[65]. Economic Context - The GDP of China reached RMB 616,836 million in the first half of 2024, with a year-on-year growth of 5.0%[68]. - The contribution of final consumption expenditure to economic growth in the first half of 2024 was 60.5%, driving GDP growth by 3.0 percentage points[68]. Corporate Governance - The board believes that the current arrangement of having the same individual serve as both chairman and CEO is beneficial for ensuring stable leadership[131]. - The audit committee has reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2024[130]. - The company has adopted a standard code for securities trading for its directors and supervisors, confirming compliance during the reporting period[132].

Financial Performance - For the year ended December 31, 2023, the net guarantee fee income was approximately RMB 245.48 million, an increase of 23.7% compared to RMB 198.14 million for the year ended December 31, 2022[3]. - Total revenue for the year ended December 31, 2023, was approximately RMB 388.56 million, representing an increase of approximately 7.72% compared to the previous year[63]. - Profit attributable to equity shareholders of the Company was approximately RMB 38.40 million, a decrease of approximately 9.82% compared to last year[64]. - The pre-tax profit was approximately RMB 75.31 million, an increase of approximately 8.70% compared to the previous year[66]. - The Group's net interest income for the year ended December 31, 2023, was approximately RMB 87.40 million, representing a decrease of approximately 6.94% from RMB 93.92 million for the year ended December 31, 2022[5]. - The Group's other revenue decreased by approximately RMB 17.25 million, or approximately 37.93%, from approximately RMB 45.48 million for 2022 to approximately RMB 28.23 million in 2023[178]. - The Group recorded share of losses of associates of approximately RMB 15.67 million for 2023, compared to approximately RMB 9.93 million for 2022[179]. - Provisions for guarantee changed from a charge of RMB 24.50 million in 2022 to a reversal of RMB 43.87 million in 2023, indicating a controllable overall risk level[180]. - The Group's operating expenses increased by approximately RMB 3.93 million, or approximately 2.82%, from approximately RMB 139.45 million for 2022 to approximately RMB 143.38 million for 2023[184]. - Impairment losses increased by approximately RMB 28.53 million or approximately 24.27% from approximately RMB 117.55 million in 2022 to approximately RMB 146.08 million in 2023[185]. SME Support and Development - The average development index for SMEs in 2023 was 89.2, up from 88.4 in 2022, indicating a positive trend in SME development despite ongoing challenges[5]. - The Group aims to provide comprehensive investment and financing services to SMEs, focusing on addressing the issues of "difficult to finance" and "expensive to finance"[5]. - The Group's business model allows for effective financial resource flow to SMEs through partnerships with supply chain companies and banks, addressing financing challenges faced by SMEs[19]. - The Group's focus on premium financial services for SMEs is intended to support high-quality economic development in the region[199]. - The Group signed a cooperation agreement with China Postal Savings Bank to enhance financial services for small and micro enterprises, laying a solid foundation for better service to the real economy[172]. - The Group established a new financing guarantee subsidiary, Guangdong Join-Share Financing Guarantee Co., Ltd., which received its business license in February 2023 and commenced operations in March 2023[196]. - The performance guarantee subsidiary, Guangdong Join-Share Performance Guarantee Co., Ltd., received its business license in May 2023 and aims to enhance the efficiency of the letter of guarantee business[197]. - The Group entered into a Cooperation Agreement on Guarantee Business with Postal Savings Bank of China, Foshan Branch, to support SMEs and enhance local economic development[199]. Risk Management - The Group's risk management includes regular post-transaction supervision and special post-transaction supervision for projects with operational risks[6]. - The Company conducts risk screening based on macro-economic changes and industry classifications to promote healthy business development and risk control[6]. - The Company conducts risk profile classification for guarantees or loans, categorizing customers into five risk profiles: "normal," "special-attention," "substandard," "suspicious," or "loss" based on various financial metrics[126]. - The Company has implemented internal control policies to manage business risks, including post-transaction inspection procedures to identify potential repayment difficulties[142]. - The Company requires loans of RMB 1,000,000 or more to be approved by the micro-lending review committee, ensuring compliance with credit policies[135]. - The risk management department reviews pre-loan investigations and ensures the validity and reliability of guarantees and collateral[136]. - The Company monitors overdue loans, with specific actions taken if loans remain overdue for more than 20 days, including on-site visits and negotiations for repayment plans[138]. - The company categorizes project risks into five levels: "Normal," "Concern," "Substandard," "Doubtful," and "Loss," adjusting supervision levels and review frequencies accordingly[152]. - The company employs special post-loan supervision for projects with operational risks, high cumulative guarantee liabilities, or industry risks, conducting monthly reviews[146]. Market Position and Strategy - The Group received an "AA" corporate rating from CSCI Pengyuan Credit Rating Co., Ltd., indicating a stable outlook and strong creditworthiness[11]. - The company was rated "AA" by Zhongzheng Pengyuan Credit Rating Co., Ltd., indicating a stable outlook[100]. - The establishment of the new subsidiaries is part of the Group's strategy to improve its market position and facilitate strategic cooperation with local government[196]. - The Group's overall market position is being strengthened through these strategic adjustments and new business initiatives[196]. - The Group plans to innovate business models and launch new initiatives to support financing development for SMEs in 2024[30]. - The company aims to optimize management and control modes, improve incentive mechanisms, and enhance cost management to create more comprehensive income[98]. Economic Environment - In 2023, China's GDP reached RMB 12,605.82 billion, growing by 5.2% compared to the previous year, which supports the overall economic environment for SMEs[6]. - The total retail sales of consumer goods in China amounted to RMB 47.1495 trillion, with a year-on-year growth of 7.2%[32]. - Service retail sales increased by 20.0%, indicating a faster recovery in service consumption[32]. - Total fixed asset investment in China reached RMB 50.3036 trillion, representing a growth of 3.0% compared to the previous year[32]. - Infrastructure investment in China increased by 5.9%, while manufacturing investment rose by 6.5%[32].

Financial Performance - Total revenue for the year ended December 31, 2023, was approximately RMB 388.56 million, an increase of about 6.57% compared to the previous year[9] - Profit for the year was approximately RMB 41.86 million, with a net profit margin of 11.62%[9] - Profit before tax was approximately RMB 75.31 million, an increase of about 8.70% compared to the previous year[9] - Profit attributable to equity shareholders for the year was approximately RMB 38.40 million, a decrease of about 9.82% compared to the previous year[9] - The group’s pre-tax profit rose from approximately RMB 69.28 million in 2022 to approximately RMB 75.31 million in 2023, an increase of about RMB 6.03 million or approximately 8.70%[131] - The group's annual profit decreased from approximately RMB 52.49 million in 2022 to approximately RMB 41.86 million in 2023, a decline of about RMB 10.63 million or approximately 20.25%[132] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.02 per share for the year ended December 31, 2023[9] - The company declared a cash dividend of RMB 31,215,853.74 for 2023, down from RMB 54,627,744.05 in 2022[79] - The company will hold its annual general meeting on June 6, 2024, to discuss the distribution of the 2023 final dividend[161] - The company will suspend share transfer registration from June 14 to June 19, 2024, to determine eligibility for the 2023 final dividend[162] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 3,788.24 million, compared to RMB 3,671.38 million as of December 31, 2022[15] - Total liabilities as of December 31, 2023, were RMB 1,432.49 million, an increase from RMB 1,320.18 million as of December 31, 2022[15] - Net assets as of December 31, 2023, were RMB 2,355.75 million, slightly up from RMB 2,350.96 million as of December 31, 2022[15] - As of December 31, 2023, accounts payable amounted to RMB 183.6 million, a significant increase from RMB 49.8 million as of December 31, 2022[44] - The total liabilities as of December 31, 2023, reached RMB 207.6 million, compared to RMB 140.3 million in the previous year, reflecting a year-over-year increase of approximately 47.9%[43] Cash Flow and Liquidity - The company reported a net interest income of RMB 87.40 million for the year, down from RMB 93.92 million in the previous year[11] - Cash and bank deposits were reported as restricted, with specific amounts deducted from cash and cash equivalents, impacting liquidity management[21] - The company’s cash flow management reflects a significant focus on ensuring liquidity through careful monitoring of cash and cash equivalents, including restricted deposits[21] Loans and Advances - The total amount of loans and advances issued reached RMB 975.871 million as of December 31, 2023, compared to RMB 782.157 million in 2022, indicating a year-over-year increase of about 25%[29] - The total loan amount from various borrowers reached RMB 141.5 million as of December 31, 2023[85] - The company offers entrusted loan services, with interest rates ranging from 0.5% to 1.15% for the year ending December 31, 2023[84] - Interest income generated from loans and advances was RMB 86,513 thousand, up from RMB 73,551 thousand, indicating a year-over-year increase of about 17.6%[172] Impairment and Provisions - The provision for impairment losses totaled RMB 96.625 million as of December 31, 2023, up from RMB 74.812 million in the previous year, representing an increase of approximately 29%[29] - The provision for bad debts was RMB 8,645,000 in 2023, which was not present in 2022, indicating the company has started recognizing potential credit losses[200] - The impairment losses increased from approximately RMB 117.55 million in 2022 to approximately RMB 146.08 million in 2023, a rise of about 24.27%[130] Revenue Recognition and Compliance - The company’s financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards, ensuring compliance and transparency in financial reporting[1] - The company did not adopt any new standards or interpretations that were not yet effective during the accounting period[6] - The company has established strict approval processes for entrusted loans, ensuring compliance and risk assessment[91] Economic Environment and Strategic Focus - In 2023, China's GDP reached RMB 12,605.82 billion, growing by 5.2% compared to the previous year[82] - The company plans to continue providing financial support to enterprises, focusing on stable growth and innovation[83] - The company is focusing on enhancing the financing environment for small and micro enterprises to support their healthy development[105] - The group plans to establish a financing leasing company to enhance inclusive financial services and increase revenue[107] Employee and Governance - The number of employees decreased from 307 in 2022 to 294 in 2023, with 86.73% holding a bachelor's degree or above[114] - The group is committed to high standards of corporate governance and has adopted a corporate governance code, ensuring compliance with relevant regulations[158] - The company has adhered to the annual contribution standards for employee retirement benefits as determined by relevant Chinese authorities for the year ended December 31, 2023[156]

Financial Performance - The company reported a consolidated profit or loss statement for the first half of 2023, with total revenue amounting to RMB 154.3 million, representing a year-on-year increase of 12%[36]. - The company reported a significant improvement in cash flow, with a net cash inflow of RMB 30 million for the first half of 2023, compared to a net outflow of RMB 5 million in the same period last year[36]. - Guarantee fee income for the six months ended June 30, 2023, was RMB 108,571,000, an increase from RMB 93,175,000 in the same period of 2022, representing a growth of 16.5%[46]. - Total interest income for the first half of 2023 was RMB 64,994,000, compared to RMB 65,165,000 in the same period of 2022, showing a slight decrease of 0.3%[46]. - Reportable segment profit before taxation for the six months ended June 30, 2023, was RMB 37,970,000, up from RMB 43,983,000 in the same period of 2022, indicating a decline of 13.7%[52]. - The overall financial position remains strong, with total assets reported at RMB 1.2 billion, reflecting a 10% increase compared to the previous year[36]. - The company recorded an impairment loss of RMB 70,570,000 for the first half of 2023, compared to RMB 54,704,000 in the same period of 2022, reflecting an increase of 28.9%[51]. - Profit before taxation for the six months ended June 30, 2023, was RMB 37,970,000, a decrease of 13.7% compared to RMB 43,983,000 for the same period in 2022[107]. - Actual income tax expense for the period was RMB 10,573,000, down from RMB 11,950,000 in the previous year, reflecting a reduction of 11.5%[107]. - Basic earnings per share decreased to RMB 19,798,000 for the six months ended June 30, 2023, compared to RMB 25,953,000 for the same period in 2022[111]. Client Growth and Market Expansion - User data indicated an increase in the number of clients served, reaching 1,200 clients by June 30, 2023, up from 1,000 clients in the same period last year, marking a growth of 20%[44]. - The company is expanding its market presence, targeting an increase in service coverage to 15 additional cities by the end of 2023, which is expected to enhance client acquisition[44]. - The company plans to support small and micro enterprises as a core part of its strategy, aligning with government policies aimed at economic growth and stability[64]. - The company aims to enhance its market position through strategic initiatives and support for small and micro enterprises, which are vital for economic stability[64]. Strategic Initiatives and Investments - The company provided a positive outlook for the second half of 2023, projecting a revenue growth of 15% to 20% based on current market trends and client acquisition strategies[44]. - New product development initiatives are underway, with an investment of RMB 10 million allocated for the research and development of innovative financing solutions[44]. - A strategic acquisition of a smaller financing firm is being considered, which could potentially increase the company's market share by 5%[44]. - The company plans to enhance its digital platform, investing RMB 5 million in technology upgrades to improve user experience and operational efficiency[44]. Financial Position and Liabilities - Segment assets as of June 30, 2023, totaled RMB 5,532,211,000, an increase from RMB 4,131,360,000 as of June 30, 2022, reflecting a growth of 34%[53]. - Segment liabilities increased to RMB 2,117,708,000 as of June 30, 2023, compared to RMB 1,935,490,000 in the same period of 2022, representing an increase of 9.4%[54]. - The Group's total liabilities as of June 30, 2023, were impacted by the issuance of debt securities amounting to approximately RMB 500 million, unchanged from December 31, 2022[133]. - The gearing ratio increased to approximately 36.27% as of June 30, 2023, up from 35.96% as of December 31, 2022, primarily due to the issuance of corporate bonds[134]. Government Policies and Economic Outlook - The People's Bank of China reduced the deposit reserve ratio by 0.25 percentage points on March 27, 2023, resulting in a weighted average deposit reserve ratio of approximately 7.6%[67][69]. - The financing guarantee industry is expected to play a crucial role in supporting SMEs, enhancing capital strength, and expanding business scale, contributing to the stable development of China's economy[76][78]. - The 2023 "SMEs Assistance Plan" aims to promote sustainable economic improvement and accelerate the recovery of SMEs and individual business proprietors[73][74]. - China's economy is projected to show resilience in the second half of 2023, with trends indicating domestic demand-driven growth, stable investment, and innovation-driven development[77][79]. - The financing environment for SMEs is continuously optimized, with government and banks working together to reduce financing costs and stabilize the financing market[67][69]. Receivables and Impairment - The Group's total receivables from guarantee customers showed a significant increase, with a detailed ageing analysis indicating a total of RMB 501,614,000 as of June 30, 2023[165]. - The allowance for doubtful debts for receivables for default guarantee payments increased to RMB 146,969,000 from RMB 127,754,000[10]. - The total amount of receivables for default guarantee payments as of June 30, 2023, was RMB 146,969,000, up from RMB 127,754,000 at the end of 2022[175]. - The impairment losses recognized in the consolidated statement of profit or loss for the period were RMB 19,208,000, compared to RMB 56,615,000 for the previous year[175]. Shareholding and Capital Contributions - The Group's shareholding in Yunfu Puhui increased to 53.85% after a capital contribution of approximately HK$48.58 million to Anhui Join-Share, raising its shareholding from 51% to approximately 63.05%[146]. - The Group's shareholding in Foshan Micro Credit increased from 30% to approximately 55.247% following the acquisition of shares from existing shareholders[180]. - Approximately HK$28.79 million and HK$32.39 million were used to establish new subsidiaries and contribute to the registered capital of Foshan Micro Credit, respectively[180]. - The Group entered into a shareholders' agreement to establish a joint venture with a registered capital of RMB300,000,000, with a capital contribution of RMB210,000,000, accounting for 70% of the new company's capital[157].

Loan and Credit Management - As of June 30, 2023, overdue loans totaled RMB 144,086,000, compared to RMB 117,380,000 as of December 31, 2022, representing a 22.7% increase[3]. - The total amount of loans and advances issued was RMB 936,264,000 as of June 30, 2023, with a net amount of RMB 857,111,000 after impairment losses, compared to RMB 707,345,000 as of December 31, 2022, indicating a 21.1% increase in net loans[4]. - The expected credit loss for entrusted loans was RMB 295,000,000 for the 12 months ending June 30, 2023, while for microloans, it was RMB 478,754,000, leading to a total expected credit loss of RMB 773,754,000[4]. - The total amount of trade receivables was RMB 73,150,000 as of June 30, 2023, compared to RMB 47,488,000 as of December 31, 2022, reflecting a 54.2% increase[10]. - The total impairment loss provision was RMB 79,153,000 as of June 30, 2023, compared to RMB 74,812,000 as of December 31, 2022, showing an increase of 5.5%[4]. - The provision for bad debts increased to RMB 146,969 thousand as of June 30, 2023, compared to RMB 127,754 thousand as of December 31, 2022, reflecting a rise of about 15%[24]. - The amount of secured loans increased to RMB 484,030 thousand as of June 30, 2023, from RMB 434,393 thousand as of December 31, 2022, reflecting a growth of about 11.4%[30]. - The company issued new loans and advances totaling RMB 19,749 thousand during the reporting period, contributing to the overall increase in loan amounts[31]. - The company issued loans and advances totaling RMB 4,338,000, down from RMB 5,867,000, a decrease of 26.1%[57]. - The company's microloan balance was approximately RMB 538.57 million, a decrease from RMB 550.74 million as of December 31, 2022[152]. Financial Performance - In the first half of 2023, the company's revenue was approximately RMB 160.25 million, an increase of about 0.56% compared to the same period in 2022[36]. - The company's profit before tax for the first half of 2023 was approximately RMB 37.97 million, a decrease of about 13.67% compared to the same period in 2022[36]. - The profit attributable to equity holders of the company for the first half of 2023 was approximately RMB 19.80 million, a decrease of about 23.72% compared to the same period in 2022[36]. - The net interest income for the first half of 2023 was RMB 43.32 million, down from RMB 55.15 million in the same period of 2022[38]. - The total comprehensive income for the first half of 2023 was RMB 28.75 million, compared to RMB 28.82 million in the same period of 2022[40]. - The company reported a basic and diluted earnings per share of RMB 0.01 for the first half of 2023, down from RMB 0.02 in the same period of 2022[38]. - The company’s total revenue for the six months ended June 30, 2023, was RMB 160,248 thousand, a marginal increase from RMB 159,352 thousand in the prior year[51]. - The company’s total equity attributable to shareholders was RMB 2,031,887 thousand as of June 30, 2023, a decrease of 1.6% from RMB 2,065,366 thousand at the end of 2022[44]. - The company’s interest expense increased significantly to RMB 21,673 thousand in the first half of 2023, compared to RMB 10,017 thousand in the same period of 2022[51]. - The company declared an interim dividend of RMB 3.5 per share for the six months ended June 30, 2023, totaling RMB 54,628,000, compared to RMB 5 per share and RMB 78,039,000 for the same period in 2022[117]. Asset and Liability Management - As of June 30, 2023, cash and cash equivalents totaled RMB 725.07 million, a decrease from RMB 844.62 million as of December 31, 2022[34]. - The company had restricted bank deposits of RMB 182.59 million as of June 30, 2023, down from RMB 226.35 million as of December 31, 2022[34]. - As of June 30, 2023, total assets amounted to RMB 3,730,128 thousand, an increase of 1.6% from RMB 3,671,138 thousand as of December 31, 2022[42]. - Total liabilities increased to RMB 1,352,878 thousand as of June 30, 2023, compared to RMB 1,320,178 thousand at the end of 2022, reflecting a growth of 2.5%[42]. - The company reported a net asset value of RMB 2,377,250 thousand as of June 30, 2023, representing an increase of 1.1% from RMB 2,350,960 thousand at the end of 2022[44]. - Cash and bank deposits decreased to RMB 976,453 thousand as of June 30, 2023, down 10.1% from RMB 1,085,492 thousand at the end of 2022[42]. - The group had no pledged loans secured by accounts receivable as of June 30, 2023, compared to RMB 20,000,000 as of December 31, 2022[129]. Risk Management and Compliance - The company has implemented several internal control policies and procedures to manage business risks related to financing guarantees[154]. - The company categorizes project risks into five levels based on various financial and repayment criteria, adjusting monitoring levels accordingly[157]. - The company actively engages in post-loan monitoring and recovery procedures to mitigate risks associated with customer defaults[158]. - The company employs a post-management procedure to identify potential repayment difficulties before the guarantee matures, ensuring proactive risk management[180]. - The company conducts regular monitoring and assessment of project status and risk conditions, with evaluations occurring every half month to six months based on business risk levels[181]. - In cases of customer default, the company collaborates with customers to develop repayment plans if the customer's business fundamentals are sound and cash flow prospects are adequate[185]. - The company has established strict approval processes for loan applications, ensuring compliance with credit policies for loans of RMB 1,000,000 or above[189]. - The company considers all loans overdue if the principal is overdue by one month or more, initiating follow-up visits to assess the situation and potential recovery measures[189]. Economic and Market Context - The GDP of China for the first half of 2023 was RMB 593,034 billion, showing a year-on-year growth of 5.5%[172]. - Final consumption expenditure contributed 4.2 percentage points to economic growth in the first half of 2023[172]. - The total capital formation contributed 1.8 percentage points to economic growth in the first half of 2023[172]. - The SME Development Index (SMEDI) was reported at 89.1 in June 2023, indicating a recovery from three consecutive months of decline[147]. Strategic Initiatives - The company launched a new WeChat mini-program "Toubobao" in May 2023 to facilitate online processing of bidding applications, enhancing customer experience[166]. - The company is actively promoting a multi-layered collaborative model involving government, finance, industry, and enterprises to support the manufacturing sector[191]. - The company aims to achieve high-quality development in 2023, marking its 20th anniversary, with a focus on risk management and precise execution[148].

Company Overview - Guangdong Join-Share Financing Guarantee Investment Co., Ltd. focuses on providing credit-based financing solutions to small and medium-sized enterprises (SMEs) in Guangdong province and certain cities in Anhui province[4]. - The company has significantly expanded its business network since its establishment in 2003, covering all major cities in Guangdong province[4]. - The management team includes experienced professionals with over 11 years in enterprise operations and management[13]. - The company aims to enhance its market position through strategic planning and operational management improvements[13]. - The company is committed to developing new products and technologies to better serve its clients[4]. Financial Performance - In 2022, the company reported a consolidated statement of profit or loss and other comprehensive income, indicating its financial performance[11]. - For the year ended December 31, 2022, total revenue was approximately RMB 360.71 million, representing an increase of approximately 13.18% compared to the previous year[30]. - Profit for the year was approximately RMB 52.49 million, with a net profit margin of 16.52%[30]. - Profit before taxation amounted to approximately RMB 69.28 million, representing a decrease of approximately 49.52% compared to the previous year[31]. - Profit attributable to equity shareholders of the Company was approximately RMB 42.58 million, a decrease of approximately 48.07% compared to the previous year[31]. - The Board recommended a final dividend of RMB 0.035 per share for the year ended December 31, 2022, down from RMB 0.05 per share in 2021[31]. - The company reported a net guarantee fee income of RMB 317,762,000 for 2022, an increase of 2.2% from RMB 310,072,000 in 2021[36]. - Total assets reached RMB 3,671,138,000 in 2022, up from RMB 3,445,065,000 in 2021, representing a growth of 6.6%[36]. - The net profit attributable to equity shareholders was RMB 52,491,000 in 2022, a decrease of 45.4% compared to RMB 96,353,000 in 2021[36]. - The return on net assets dropped to 2.2% in 2022 from 4.1% in 2021, indicating a decline in profitability[36]. Strategic Initiatives - Future outlook includes continued expansion of services and potential market penetration in new regions[4]. - The company successfully issued corporate bonds with a coupon rate of 3.50%, the lowest in the history of guarantee companies at the same level[42]. - The company improved its capacity to serve SMEs through the introduction of state-owned capital and a new round of capital increase in its subsidiaries[42]. - The company plans to innovate more business models and launch new initiatives to support the financing and development of SMEs in 2023[74]. - Guangdong Join-Share is also considering strategic acquisitions to enhance its service offerings, with a budget of RMB 200 million allocated for potential mergers and acquisitions in 2023[91]. Market and Economic Context - The company emphasizes the importance of macroeconomic policies to stabilize market entities and support employment[43]. - The COVID-19 pandemic reoccurred in 2022, impacting the global economic recovery[67]. - The central government introduced a new portfolio-based tax support policy, combining phased measures to implement tax cuts and enhance financial support for the real economy[68]. - Industries severely affected by the pandemic received continuous financing support from the government[68]. - The Gross Domestic Product (GDP) of China reached RMB 121.0207 trillion in 2022, representing a 3.0% increase compared to the previous year[81]. - China's total value of goods import and export was RMB 42.07 trillion in 2022, reflecting a 7.7% increase over 2021[81]. - The SMEs Development Index (SMEDI) was reported at 87.9 in December 2022, indicating a decrease of 0.2 points from the previous month, marking the lowest level in two years[82]. Risk Management - The company has implemented various innovative financial measures to support the development of small and micro enterprises[44]. - The company has a risk assessment process and collateral management procedures in place to classify risk statuses[158]. - The company has implemented stricter risk screening measures based on macroeconomic changes, focusing on industries with higher risks[182]. - The risk management department classifies customer risk profiles into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," adjusting supervision grades accordingly[187]. - The company conducts regular on-site inspections and third-party supervision for tangible assets used as collateral, ensuring proper management of both tangible and intangible assets[183]. Client and Service Development - User data indicates that the company expanded its client base by 30%, reaching a total of 1,500 active clients by the end of 2022[91]. - The company has obtained seven computer software copyright registration certificates, showcasing its innovation in supply chain finance and inclusive finance[73]. - The company has received multiple honors, including the provincial "2022 Model Supervision Rating AAA+ Agency" and the "Outstanding Results of Operation Award," laying a solid foundation for future expansion[73]. - The company is exploring market expansion opportunities in Southeast Asia, with plans to establish a presence in at least two new countries by the end of 2023[91]. Governance and Compliance - The company is committed to enhancing its corporate governance practices, ensuring compliance with regulatory requirements and improving transparency[93]. - The board has achieved its diversity objectives, with at least 40% of its members being independent non-executive directors[93]. - The Group has obtained a business license for financing guarantee business, compliant with industry regulatory requirements[113].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 317,762,000, a slight increase from RMB 310,072,000 in 2021, representing a growth of approximately 2.3%[14] - Net income from guarantee fees was RMB 198,139,000, compared to RMB 193,166,000 in the previous year, indicating a growth of about 2.0%[14] - Interest income from loans and advances increased to RMB 73,551,000 from RMB 60,619,000, reflecting a growth of approximately 21.4%[14] - The company reported a decrease in financing guarantee fee income to RMB 156,949,000 from RMB 183,421,000, a decline of about 14.4%[14] - The company’s interest net income rose to RMB 93,923,000 from RMB 78,747,000, marking an increase of around 19.2%[14] - The company reported a total comprehensive income of RMB 6,843,000 for the year ended December 31, 2022, compared to RMB 16,384,000 in 2021, indicating a decline in performance[83] - The company's net profit decreased by approximately RMB 43.86 million or 45.52% to about RMB 52.49 million in 2022, with a net profit margin dropping from 31.07% to 16.52%[146] Asset and Liability Management - The company’s accounts receivable for default guarantees increased to RMB 474,459,000 in 2022 from RMB 305,500,000 in 2021, representing a growth of approximately 55.2%[27] - The total accounts receivable, after deducting provisions, was RMB 1,023,217,000 in 2022, compared to RMB 734,595,000 in 2021, marking an increase of about 39.3%[27] - The company’s provision for bad debts for customer receivables was RMB 48,200,000 in 2022, compared to RMB 45,559,000 in 2021, reflecting an increase of about 5.4%[30] - The impairment loss provision for loans was RMB 74,812 million as of December 31, 2022, compared to RMB 56,462 million in 2021, reflecting an increase of 32.5%[48] - As of December 31, 2022, the total liabilities amounted to RMB 140,327,000, an increase from RMB 104,215,000 as of December 31, 2021, representing a growth of approximately 34.6%[64] - The company’s debt-to-asset ratio increased to 35.96% as of December 31, 2022, compared to 31.24% in the previous year, primarily due to the issuance of corporate bonds[169] Investment and Capital Structure - The company established a joint venture with a registered capital of RMB 300,000,000, contributing RMB 210,000,000, which accounts for 70% of the new company's capital[28] - The company’s non-listed equity investments increased to RMB 12,975 million in 2022 from RMB 6,070 million in 2021, showing a substantial increase of 113%[54] - The company actively reviews and manages its capital structure to balance shareholder returns and financing costs[164] - The company has no significant investments or acquisitions planned as of December 31, 2022[176] Revenue Streams - The total revenue from the sale of non-recourse accounts receivable was RMB 2,333,000,000 in 2022, compared to RMB 2,000,000,000 in 2021, representing a growth of approximately 16.7%[27] - Consulting service fee income decreased to RMB 25,700,000 from RMB 38,159,000, a decline of approximately 32.6%[14] - Other income surged by approximately RMB 34.32 million or 397.68% to about RMB 42.95 million in 2022, mainly from government subsidies and foreign exchange gains[137] Risk Management - The company has implemented internal control policies to manage business risks, including regular monitoring and risk assessment procedures[112][113] - The company categorizes project risks into five levels based on clients' financial conditions and repayment capabilities, adjusting monitoring levels accordingly[116] - The company has a recovery process in place for defaulted loans, which includes contacting clients and negotiating repayment plans[117] - The company emphasizes the importance of collateral and guarantees, taking legal action if disputes arise regarding collateral rights[125] Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with the relevant provisions, except for the chairman and CEO being the same person[183] - The board believes that having the same person as chairman and CEO is beneficial for stable leadership and effective execution of the overall strategy[183] - The company will continue to review and strengthen its corporate governance practices to ensure compliance with the governance code[183] Future Outlook - The group aims to enhance operational efficiency and support the real economy, focusing on the guarantee business as a core mission[100] - The group plans to leverage national industrial policies to seize development opportunities and strengthen support for small and medium enterprises[100] - The company plans to promote the operation of new guarantee companies and continue to adjust its top-level structure in 2023[161] - The company has established a new cooperative model for policy funds, expected to become a new growth point for business scale in the coming year[163]