Economic Overview - In the first half of 2022, China's GDP reached approximately RMB 56.2642 trillion, representing a year-on-year increase of approximately 2.5% at constant prices[12]. - In the second quarter of 2022, China's GDP was RMB 29.2464 trillion, showing a quarter-on-quarter increase of 0.4% at constant prices[12]. - Net exports contributed 0.9 percentage points to economic growth in the first half of 2022, with a contribution of 1.1 percentage points in the second quarter[12]. - The management emphasizes the resilience of China's economic development despite global setbacks[12]. - The overall economic development trend in China is showing steady and positive signs[12]. - The Group aims to enhance its capital service functions and support private enterprises' financing under favorable policies for SMEs[130]. - The financing guarantee industry in China is expected to develop in a professional and commercial direction, promoting sustainable development of the real economy[130]. Company Performance - In the first half of 2022, the Group recorded total revenue of RMB178.21 million[15]. - For the six months ended June 30, 2022, the net guarantee fee income was approximately RMB88.73 million, stable compared to RMB88.19 million for the same period in 2021[24]. - The Group's net interest income was approximately RMB 55.15 million, representing an increase of approximately 35.84% compared to RMB 40.60 million for the same period in 2021[39]. - The Group's profit before taxation decreased by approximately RMB33.71 million, or approximately 43.39%, to approximately RMB43.98 million for the six months ended 30 June 2022 from approximately RMB77.69 million for the corresponding period in 2021[109]. - The Group's profit for the period decreased by approximately RMB25.52 million, or approximately 44.34%, to approximately RMB32.03 million for the six months ended 30 June 2022 from approximately RMB57.56 million for the corresponding period in 2021[112]. - The Group's net profit margin decreased to approximately 20.10% for the six months ended 30 June 2022 from approximately 39.96% for the corresponding period in 2021[112]. Financial Position - As of June 30, 2022, the Group's total outstanding guarantee was approximately RMB10,420.84 million, an increase from RMB9,967.71 million as of December 31, 2021[24]. - The Group's balance of outstanding guarantees increased by approximately 4.55% from approximately RMB9,967.71 million for the six months ended 30 June 2021 to approximately RMB10,420.84 million for the six months ended 30 June 2022[100]. - The Group's interest-bearing borrowings amounted to approximately RMB130.19 million, an increase from RMB69.42 million as of December 31, 2021[151]. - The gearing ratios of the Group were approximately 33.85% as of June 30, 2022, up from 31.24% as of December 31, 2021, primarily due to increased interest-bearing borrowings[154]. Risk Management - The company conducts regular post-transaction supervision every half month, month, two months, three months, or six months based on the project's risk profile[45]. - Risk screening is performed to promote healthy business development and risk control, particularly for industries with greater risks or abnormal counter-guarantee conditions[49]. - The company initiates collection and recovery processes if it assesses significant hidden risks or risk exposure in projects[55]. - The company classifies customer risk profiles into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," adjusting supervision grades and review frequencies accordingly[54]. - The risk management department conducts thorough assessments for overdue loans, with actions initiated if loans remain overdue for more than 45 days[79]. SME Support and Development - The Small and Medium Enterprises Development Index (SMEDI) of PRC was 88.4 in June 2022, reflecting a 0.2 point increase after four consecutive months of decline[15]. - The Group aims to establish a systematic investment and financing service platform for SMEs to support their transformation and upgrade[16]. - The Group has provided financial services to over 15,000 SMEs, with an accumulated service amount exceeding RMB 150 billion[135]. - By June 30, 2022, the balance of inclusive loans to SMEs reached RMB21.77 trillion, reflecting a year-on-year growth of 22.64%[122]. - The Ministry of Finance issued a notice to enhance the credit enhancement role of governmental financing guarantee institutions to support market participants[126]. Capital Management and Investments - The Group's funds raised from the listing have been invested in support of financing development for SMEs[151]. - The Group's shareholding in Foshan Micro Credit increased from 30% to approximately 55.247% following the acquisition of shares, with approximately HK$28.79 million and HK$32.39 million used for this purpose[160]. - The Group's shareholding in Anhui Join-Share Financing Guarantee Co., Ltd. increased from 51% to approximately 63.05% after contributing approximately HK$48.58 million to its registered capital[159]. - The Group plans to adjust its internal group structure and change the use of unutilized proceeds from the listing, pending shareholder approval[85]. Employee and Corporate Governance - As of June 30, 2022, the total number of staff within the Group was 308, with 86.04% holding a bachelor's degree or above[190]. - The Group believes that employee quality is crucial for sustained development and profitability, offering performance-based salaries and annual training[190]. - The Group complied with pension scheme requirements for PRC-based employees during the six months ended June 30, 2022[190].

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[6]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province[6]. - The company provides guarantees and entrusted loans to SMEs and individual business proprietors, and has been offering micro-lending since July 2011 through Foshan Micro Credit[7]. - Guangdong Join-Share has established strong cooperative relationships with various banks and non-bank financial institutions, enhancing its market position and reducing credit risks[8]. - The company has a diverse shareholder base without a controlling shareholder, ensuring management independence and prudent corporate governance[8]. - Guangdong Join-Share holds an "AA" corporate rating from CSCI Pengyuan Credit Rating Co., Ltd., indicating a stable outlook[8]. - The company's H Shares were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 23, 2015, laying a solid foundation for future development[12]. Financial Performance - For the year ended December 31, 2021, total revenue was approximately RMB 318.70 million, representing an increase of approximately 3.92% compared to the previous year[27]. - Profit for the year was approximately RMB 96.35 million, with a net profit margin of 31.07%[27]. - Profit before taxation decreased by approximately 11.04% to RMB 137.25 million compared to the previous year[28]. - Profit attributable to equity shareholders was approximately RMB 81.99 million, a decrease of approximately 23.07% year-on-year[28]. - The Board recommended a final dividend of RMB 0.05 per share for the year ended December 31, 2021, down from RMB 0.06 per share in 2020[28]. - Total assets as of December 31, 2021, were approximately RMB 3,445.07 million, with total liabilities of approximately RMB 1,076.28 million[33]. - The return on net assets was 4.1%, while the return on assets was 2.8%[33]. Business Growth and Strategy - The company successfully issued the first tranche of corporate bonds to provide lower costs and better quality financial supply to SMEs[41]. - The company plans to focus on compliant, collaborative, innovative, and mutually beneficial development strategies in 2022 to enhance profitability[48]. - The company aims to optimize group control and improve incentive mechanisms to further boost its financial performance[51]. - The Group's annual business volume is approximately RMB 20 billion to RMB 30 billion, having served over 12,000 enterprises with a cumulative service amount exceeding RMB 120 billion over 18 years[131]. - The Group plans to innovate its business model to create new profit growth points in 2022[129]. Market Environment - The central government implemented macroeconomic policies that included tax cuts and fee reductions exceeding RMB 1 trillion, benefiting market players[40]. - Large commercial banks' inclusive loans to SMEs increased by more than 40%, contributing to a stable decline in comprehensive financing costs for enterprises[40]. - In 2021, China's GDP reached RMB 114.4 trillion, growing by 8.1% year-on-year, marking a strong start for the "14th Five-Year Plan"[53]. - The small and medium-sized enterprises development index (SMEDI) was 86.4 in December 2021, reflecting a 0.1 percentage point increase from the previous month, indicating a recovery trend[56]. - The balance of inclusive small and micro loans in the PRC reached RMB 19.23 trillion at the end of 2021, representing a year-on-year increase of 27.3%[116]. Operational Highlights - As of December 31, 2021, the Group's outstanding guarantee balance was approximately RMB9,967.71 million, an increase from RMB9,333.52 million as of December 31, 2020, representing a growth of 6.8%[62]. - For the year ended December 31, 2021, the net guarantee fee income was approximately RMB193.17 million, up from RMB176.57 million in 2020, reflecting a year-over-year increase of 9.4%[62]. - The balance of entrusted loans as of December 31, 2021, was approximately RMB234.92 million, compared to RMB158.57 million as of December 31, 2020, indicating a significant increase of 48.1%[63]. - The balance of micro-lending as of December 31, 2021, was approximately RMB434.65 million, an increase from RMB379.51 million as of December 31, 2020, which is a growth of 14.5%[64]. - The Group's total guarantee fee income increased by approximately RMB15.17 million, or approximately 7.02%, from approximately RMB216.25 million in 2020 to approximately RMB231.42 million in 2021[81]. Management and Leadership - Mr. Wu Liejin has been with the Group since May 23, 2003, and is responsible for overall development planning and business operations[164]. - Mr. Wu has approximately 22 years of experience in the finance industry, having held various managerial positions in financing guarantee and investment companies[170]. - Mr. Li beneficially owns 77,720,000 domestic shares and 35,000,000 H shares as of the report date[190]. - Mr. Zhang has approximately 11 years of experience in enterprise operations and management[178]. - Mr. Luo Zhenqing has approximately 25 years of experience in state-owned assets and enterprise management[192]. Regulatory Compliance - The Group has complied with industry regulatory requirements and obtained the business license for financing guarantee business from Guangdong Financial Supervisory Authority[58]. - The statutory deposit reserve ratio for small financial institutions has been reduced to 9%, a decrease of 10% compared to previous levels, to stabilize support for small and micro enterprises[119]. Challenges and Risks - Provisions charged for guarantee losses increased significantly by approximately RMB7.44 million, or approximately 264.77%, from approximately RMB2.81 million in 2020 to approximately RMB10.25 million in 2021[92]. - The Group recorded share of losses of associates of approximately RMB3.02 million for 2021 compared to share of gains of approximately RMB15.11 million for 2020[91]. - Operating expenses increased by approximately RMB11.15 million, or approximately 9.77%, from approximately RMB114.10 million in 2020 to approximately RMB125.25 million in 2021[102].

Economic Performance - In the first half of 2021, China's GDP was RMB 53,216.7 billion, with a year-on-year growth of 12.7%[26]. - The first quarter GDP growth was 18.3%, while the second quarter growth was 7.9%[26]. - The two-year average growth rate for the first half of 2021 was 5.3%, which was 0.3 percentage points faster than the first quarter[26]. - The scale of imports and exports in the first half of the year increased by 27.1% compared to the same period last year[26]. - Monthly imports and exports achieved positive year-on-year growth for 13 consecutive months[26]. - The national economy showed a steady and positive development trend despite challenges from the COVID-19 pandemic[26]. - The overall economic recovery in China is supported by government initiatives and structural reforms[26]. Company Financial Performance - In the first half of 2021, the Group recorded revenue of RMB144.03 million, a year-on-year decrease of 2.35%, and profit of RMB57.56 million, a decrease of 9.25% compared to the same period in 2020[29][34]. - Net guarantee fee income for the first half of 2021 was approximately RMB88.19 million, remaining stable compared to RMB89.00 million in the same period of 2020[37][40]. - Net interest income decreased by approximately RMB2.37 million, or 5.51%, to approximately RMB40.60 million for the six months ended June 30, 2021, primarily due to a 33.72% year-on-year increase in interest expenses[38][41]. - The Group's profit for the six months ended June 30, 2021, decreased by approximately RMB 5.86 million, or approximately 9.24%, to approximately RMB 57.56 million from approximately RMB 63.42 million for the corresponding period in 2020[67]. - The net profit margin decreased to approximately 39.96% for the six months ended June 30, 2021, down from approximately 43.00% for the same period in 2020[73]. Financing and Guarantees - As of June 30, 2021, the total outstanding guarantees exceeded RMB10,356.87 million, representing an increase of approximately 10.96% compared to December 31, 2020[35][39]. - The balance of inclusive finance loans reached RMB24.76 trillion by the end of Q2 2021, marking a year-on-year increase of 25.5%[29][31]. - The Group's total maximum guarantee granted increased by 11.51% compared to June 30, 2020[29][31]. - The Group's financing guarantee industry is supported by government policies aimed at revitalizing small and medium-sized enterprises (SMEs) affected by COVID-19[29][31]. - The Group aims to alleviate financing difficulties for SMEs by implementing a policy-based guarantee fund business, leveraging a three-tiered financial risk-sharing mechanism[89]. Revenue and Expenses - Interest income from micro-lending decreased by approximately RMB3.91 million, or 15.10%, to approximately RMB21.99 million for the six months ended June 30, 2021[44]. - Operating expenses increased by approximately RMB4.11 million, or approximately 9.02%, to approximately RMB49.70 million for the six months ended June 30, 2021 from approximately RMB45.59 million for the corresponding period in 2020[59]. - Income tax decreased by approximately RMB1.08 million, or approximately 5.09%, to approximately RMB20.14 million for the six months ended June 30, 2021 from approximately RMB21.22 million for the corresponding period in 2020[61]. - Other revenue decreased by approximately RMB8.97 million, or approximately 62.55%, to approximately RMB5.37 million for the six months ended June 30, 2021 from approximately RMB14.34 million for the corresponding period in 2020[51]. Capital and Investments - Capital expenditures for the six months ended June 30, 2021, amounted to approximately RMB 1.24 million, primarily related to the acquisition of office equipment and R&D expenses[68]. - The Group's cash and cash equivalents amounted to approximately RMB 1,130.61 million[102]. - The Group's interest-bearing borrowings were approximately RMB 66.60 million, with RMB 21.00 million at a fixed interest rate of 11.50%[108]. - The Group issued debt securities valued at approximately RMB 262.50 million, with a coupon rate of 4.60% per annum[110]. - Approximately HK$120.00 million was allocated to develop financing guarantee business and establish new subsidiaries and branches in Guangdong Province[115]. Regulatory Environment - The PRC government continues to impose strict regulations on the financial industry, complicating approval processes for investments[143]. - The regulatory environment for the financing guarantee industry is expected to be gradually refined, promoting industry development while improving quality[88]. - The company has revised the expected time of utilization of the remaining proceeds due to stringent regulatory measures in the PRC financial industry[142]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and chief executive officer[193]. - The Audit Committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2021, ensuring compliance with Hong Kong Accounting Standard 34[186]. - The Company is committed to maintaining high standards of corporate governance to protect the interests of its shareholders[191]. Shareholding Structure - The total issued domestic shares and H Shares of the Company were 1,006,429,353 and 554,363,334, respectively, as of June 30, 2021[161]. - Fojin HK held 164,164,000 H Shares, representing approximately 29.61% of the H Shares and 10.52% of the total share capital of the Company[171]. - The largest shareholder, Dragon Pearl, owned 93,472,000 H Shares, accounting for 16.86% of the H Shares and 5.99% of the total share capital[171]. Staff and Human Resources - As of June 30, 2021, the total number of staff within the Group was 303, a decrease from 315 as of December 31, 2020[150]. - Staff costs for the six months ended June 30, 2021, amounted to approximately RMB 34.42 million, including salaries, wages, bonuses, and other benefits[150].

(言) Join-Share中盈盛达 共 创 共 享 共 成 长 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 (A joint stock limited liability company incorporated in the People's Republic of China) ( 於中華人民共和國註冊成立的股份有限公司 ) Stock Code 股份代號：1543 年度報告 ANNUAL REPORT 2020 * For identification purpose only 值供識別 CONTENTS 目錄 2 Corporate Profile 公司介紹 3 Corporate Information 公司資料 6 Financial Highlights 財務摘要 7 Chairman's Statement 董事長致辭 10 Management Discussion and Analysis 管理層討論與分析 29 Directors, Supervisors and ...

Economic Performance - In Q1 2020, China's GDP decreased by 6.8% year-on-year, amounting to RMB 20,650.4 billion, marking the first quarterly economic contraction since 1992[11] - In Q2 2020, China's GDP showed a recovery with a year-on-year increase of 3.2%[11] - The downward pressure on China's foreign trade has increased throughout 2020 due to a sharp decline in international market demand[11] - The first five months of 2020 saw a decline in the growth rate of China's foreign trade import and export[11] - By the end of March 2020, the balance of loans for inclusive small and micro enterprises reached RMB 12.4 trillion, representing a year-on-year growth of 23.6%[55] Impact of COVID-19 - The ongoing COVID-19 pandemic has created significant challenges for SMEs in the PRC, impacting long-term projections[12] - The Group will continue to monitor the development of the COVID-19 pandemic and its impact on operations and results[12] - Provisions for guarantee losses increased to approximately RMB 18.76 million for the six months ended June 30, 2020, from approximately RMB 17.48 million for the same period in 2019, reflecting a more cautious risk reserve ratio due to COVID-19[32] Financial Performance - In the first half of 2020, the Group achieved revenue of RMB161.85 million and profit of RMB63.42 million, representing a decrease of approximately 12.02% and 7.44% respectively compared to the same period in 2019[17] - The Group's net guarantee fee income increased by approximately RMB4.75 million, or approximately 5.64%, to approximately RMB89.00 million for the six months ended June 30, 2020[20] - The total guarantee fee income from the retail guarantee business increased by approximately RMB3.90 million or approximately 14.26%, to approximately RMB31.25 million for the six months ended June 30, 2020[20] - The Group's net interest income decreased by approximately RMB1.70 million, or approximately 3.81%, to approximately RMB42.97 million for the six months ended June 30, 2020[21] - Profit before taxation decreased by approximately RMB8.51 million or approximately 9.13% to approximately RMB84.65 million for the six months ended June 30, 2020, from approximately RMB93.16 million for the same period in 2019[40] - Profit for the period decreased by approximately RMB5.10 million or approximately 7.44% to approximately RMB63.42 million for the six months ended June 30, 2020, from approximately RMB68.52 million for the same period in 2019[42] - Net profit margin decreased to approximately 43.00% for the six months ended June 30, 2020, from approximately 46.90% for the same period in 2019[42] Business Development and Strategy - The Group plans to gradually resume and expand its business development as the domestic epidemic is under control and the economy begins to recover[12] - The Group emphasizes the importance of creating a good business environment and promoting participation in international markets[12] - The Group intends to adopt innovative business models to alleviate the financing difficulties faced by SMEs, including upgrading products dedicated to agricultural development and SMEs[63] - The Company will continue to improve integrated financial services and enhance its industry chain by incorporating small loans, financial leasing, commercial factoring, and equity investment[64] - The Group aims to further promote the integration of finance with industry and technology using Internet, big data, and blockchain technologies[65] Government Support and Policies - The PRC government has implemented a series of policies to support SMEs, including fiscal and taxation support and increasing financial availability[12] - The introduction of supportive policies is expected to maintain steady growth in the scale of monetary credit and social financing in the second half of 2020[58] Shareholder Information - The total issued share capital of the company as of June 30, 2020, was 1,560,792,687 shares[129] - Lo Kai Bong held 30,368,000 H Shares, representing approximately 5.48% of the relevant class of shares and 1.95% of the total share capital[140] - Foshan Financial owned 164,164,000 H Shares, accounting for 29.61% of the relevant class of shares and 10.52% of the total share capital[140] - Dragon Pearl Hong Kong Investment Development Limited held 75,358,000 H Shares, which is 13.59% of the relevant class of shares and 4.83% of the total share capital[143] Corporate Governance - The Company has complied with the Corporate Governance Code, except for the deviation regarding the separation of roles of chairman and chief executive officer[152] - The Company does not have the position of chief executive officer; the duties are performed by the president[153] - The Company has adopted the Model Code for securities transactions and confirmed full compliance by all Directors and Supervisors during the six months ended June 30, 2020[161] Capital Management and Investments - The company proposed to issue Domestic Corporate Bonds with an aggregate principal amount of not more than RMB500.00 million in one single tranche or multiple tranches[180] - The company injected additional share capital of RMB110.00 million to its subsidiary, increasing its registered capital from RMB60.00 million to RMB170.00 million[183] - The company aims to enhance its capital management services through the establishment of a wholly-owned subsidiary[85]

Business Overview - Guangdong Join-Share reported a stable outlook with an "AA+" corporate rating from Shenzhen Lianhe Credit Information Service Co., Ltd[7]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province since its establishment in 2003[5]. - Guangdong Join-Share primarily provides guarantees and entrusted loans to SMEs, with a focus on credit-based financing solutions[6]. - The company has established strong cooperative relationships with various banks and non-bank financial institutions, enhancing its leading position in the industry[7]. - The H shares of the company were successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on December 23, 2015, laying a solid foundation for future development[8]. - The company consolidated Foshan Chancheng Join-Share Micro Credit Co., Ltd. into its group in June 2014, expanding its micro-lending services[6]. - Guangdong Join-Share aims to ensure management independence and has a diverse shareholder base without a controlling shareholder[7]. - The management team possesses substantial expertise in finance, banking, accounting, and legal industries, contributing to the company's operational strength[7]. - The company has been focusing on providing financing solutions to small and medium-sized enterprises to meet their business needs[5]. Financial Performance - Total revenue for the year ended December 31, 2019, was approximately RMB 365.31 million, representing an increase of approximately 11.51% compared to the previous year[21]. - Net profit for the year was approximately RMB 142.95 million, with a net profit margin of 46.72%[21]. - Profit before taxation amounted to approximately RMB 193.20 million, representing a decrease of approximately 0.59% compared to the previous year[21]. - Profit attributable to equity shareholders of the Company was approximately RMB 133.16 million, an increase of approximately 6.45% compared to the previous year[22]. - The board recommended a final dividend of RMB 0.06 per share for the year ended December 31, 2019[22]. - Total assets as of December 31, 2019, were approximately RMB 3,191.77 million, an increase from RMB 3,034.38 million in the previous year[27]. - Total liabilities increased to approximately RMB 784.87 million from RMB 672.77 million in the previous year[27]. - Net assets as of December 31, 2019, were approximately RMB 2,406.90 million, compared to RMB 2,361.61 million in the previous year[27]. - Return on net assets was 6.0%, down from 7.0% in the previous year[27]. - Net profit margin decreased to 46.7% from 52.5% in the previous year[27]. Revenue and Income Sources - In 2019, the total revenue of the Group increased by approximately 11.51% year-on-year[48]. - As of December 31, 2019, the net balance of outstanding guarantees was approximately RMB 10,683.41 million, with net guarantee fee income of approximately RMB 187.19 million for the same period[56]. - The balance of entrusted loans as of December 31, 2019, was approximately RMB 182.44 million, with net interest income from SME lending business amounting to approximately RMB 87.78 million[62]. - The balance of micro-lending as of December 31, 2019, was approximately RMB 405.35 million, with a maximum lending limit of RMB 5.00 million per loan[58]. - Net guarantee fee income increased by approximately RMB22.85 million, or approximately 13.90%, to approximately RMB187.19 million in 2019 from approximately RMB164.34 million in 2018[78]. - Total guarantee fee income rose by approximately RMB29.49 million, or approximately 17.75%, to approximately RMB195.62 million in 2019 from approximately RMB166.13 million in 2018[78]. - Financing guarantee fee income increased by approximately RMB22.90 million or approximately 21.00% to approximately RMB131.93 million in 2019[78]. - Revenue from retail financing guarantee services surged by approximately RMB24.24 million or approximately 779.42% to approximately RMB27.35 million in 2019[78]. - Net interest income increased by approximately RMB9.54 million, or approximately 12.19%, to approximately RMB87.78 million in 2019 from approximately RMB78.24 million in 2018[79]. Strategic Initiatives and Future Plans - The Company aims to enhance comprehensive income by focusing on innovation, cost management, and optimizing management control in 2020[41]. - The Company emphasizes the importance of customer-oriented, problem-oriented, and goal-oriented approaches for business model innovation[41]. - The company aims to enhance its ability to support the real economy by improving credit structure and increasing the proportion of medium and long-term loans in 2020[119]. - The company plans to adopt innovative business models to alleviate financing difficulties for SMEs, including the launch of dedicated capital management products[124]. - The company will continue to improve integrated financial services by incorporating small loans, financial leasing, commercial factoring, and equity investment into its industry chain[125]. - The company focuses on integrating finance with industry and technology using Internet, big data, and blockchain to enhance service quality in the supply chain[126]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market reach[163]. - A strategic partnership with a leading tech firm has been established to leverage technology in financial services[163]. - The company aims to improve operational efficiency by 15% through process optimization initiatives in 2020[163]. Management and Governance - The company highlighted the importance of SMEs in the modern economic system and the need for policies to reduce financing costs and improve access to financing[110]. - The company has a strong leadership team with diverse backgrounds in finance, management, and state-owned enterprise operations, enhancing its strategic capabilities[181]. - The board of directors includes professionals with extensive experience in both public and private sectors, ensuring a comprehensive understanding of market dynamics[189]. - The diverse expertise of the board members positions the company well for future growth and market expansion opportunities[180]. - The management team is committed to developing new products and technologies to meet evolving market demands[198]. Operational Challenges and Responses - The company is actively monitoring the impact of the COVID-19 pandemic on its financial position and operating results[150]. - Provisions for guarantee losses increased to approximately RMB2.44 million in 2019 from a write-back of approximately RMB5.06 million in 2018, due to an increase in outstanding financing guarantee balance by approximately RMB55.91 million or 2.16%[94]. - Impairment losses rose by approximately RMB40.60 million to approximately RMB58.31 million in 2019 from approximately RMB17.71 million in 2018, primarily due to increased losses on default guarantee payments and receivables from guarantee customers[95]. - Operating expenses increased by approximately RMB3.85 million or 3.21% to approximately RMB123.94 million in 2019, driven by a 12.76% increase in staff costs[100]. Human Resources - The total number of staff within the company increased from 298 as of December 31, 2018, to 302 as of December 31, 2019[155][157]. - For the year ended December 31, 2019, the company paid approximately RMB 76.90 million in employee remuneration[155].

Financial Performance - The total revenue for the first half of 2019 reached RMB 183.97 million, representing a year-on-year increase of approximately 26.59%[11] - The profit for the same period was RMB 68.52 million, showing a year-on-year growth of about 6.61%[11] - The net income from guarantee fees increased to approximately RMB 84.25 million, up by about RMB 10.42 million or 14.11% from the previous year[14] - The income from financing guarantee fees rose by approximately RMB 7.54 million or 15.33% to about RMB 56.73 million[14] - Non-financing guarantee fee income increased by approximately RMB 2.42 million or 9.13% to around RMB 28.94 million[14] - The net interest income increased from approximately RMB 35.26 million for the six months ended June 30, 2018, to approximately RMB 44.67 million for the six months ended June 30, 2019, representing an increase of about RMB 9.41 million or approximately 26.69%[15] - The pre-tax profit rose from approximately RMB 86.80 million for the six months ended June 30, 2018, to approximately RMB 93.16 million for the same period in 2019, an increase of about RMB 6.36 million or approximately 7.33%[25] - The net profit for the period increased from approximately RMB 64.27 million in 2018 to approximately RMB 68.52 million in 2019, an increase of about RMB 4.25 million or approximately 6.61%[29] - The company reported a net profit of RMB 54,939 thousand for the six months ended June 30, 2019, compared to RMB 70,153 thousand for the same period in 2018, reflecting a decline of 21.7%[117] - Total comprehensive income for the period was RMB 54,721 thousand, down from RMB 68,059 thousand in the previous year, indicating a decrease of 19.5%[121] Revenue Sources - Guarantee fee income for the six months ended June 30, 2019, was RMB 85,672,000, an increase of 13.0% from RMB 75,717,000 in the same period of 2018[101] - Interest income totaled RMB 50,764,000, with RMB 7,650,000 from guarantee business and RMB 43,114,000 from small and micro enterprise loans[168] - Other income increased from approximately RMB 23.05 million in 2018 to approximately RMB 37.88 million in 2019, an increase of about RMB 14.83 million or approximately 64.34%[20] - The company plans to continue expanding its guarantee and consulting services to small and micro enterprises, focusing on risk management and internal control consulting[162] Expenses and Liabilities - The operating expenses increased from approximately RMB 40.72 million in 2018 to approximately RMB 54.04 million in 2019, an increase of about RMB 13.32 million or approximately 32.71%[24] - The impairment losses increased from approximately RMB 22.08 million in 2018 to approximately RMB 24.34 million in 2019, an increase of about RMB 2.26 million or approximately 10.24%[23] - Total liabilities increased to RMB 868,547,000 from RMB 672,769,000 at the end of 2018, indicating a rise of 29.1%[111] Cash Flow and Assets - As of June 30, 2019, cash and cash equivalents stood at RMB 568,140 thousand, a decrease from RMB 516,562 thousand year-over-year[126] - The company reported a significant reduction in cash used for purchasing financial assets, totaling RMB (123,500) thousand, compared to RMB (187,174) thousand in the previous year[126] - The company’s total restricted bank deposits amounted to RMB 913,639,000 as of June 30, 2019, compared to RMB 1,125,345,000 as of December 31, 2018, a decrease of 18.8%[195] Corporate Governance and Structure - The company maintained compliance with the corporate governance code as per the listing rules, with a board consisting of one executive director, five non-executive directors, and three independent non-executive directors[88] - The company has not established the position of CEO, with responsibilities being fulfilled by the president[89] - The company believes that having the chairman also serve as president ensures stable leadership and effective execution of overall strategic plans[89] Strategic Initiatives - The company is focused on strategic transformation and management enhancement to capitalize on market opportunities[10] - The board plans to continue transforming and upgrading its business model, focusing on customer needs and value creation[37] - The group aims to innovate its business thinking to meet diverse financing needs and explore new financing channels beyond traditional banking[37] Employee Information - The total number of employees as of June 30, 2019, was 301, with 81% holding a bachelor's degree or higher[71] - The company paid approximately RMB 30.86 million in employee compensation during the six months ending June 30, 2019[71] - Employee costs increased to RMB 30,855,000 in the six months ended June 30, 2019, up from RMB 20,356,000 in the same period of 2018, representing a growth of 51.5%[184] Market and Economic Environment - The overall economic environment in China remains stable, with GDP growth of 6.3% in the first half of 2019, supporting the demand for guarantee services[9] - The group anticipates more policy support for financing the real economy, particularly for small and micro enterprises[36] Shareholder Information - Major shareholder Foshan Jin控 held 164,164,000 H shares, representing approximately 29.61% of the H share class and 10.52% of the total equity[80] - The beneficial owner Lu Qibang held 30,368,000 H shares, accounting for 5.48% of the H share class and 1.95% of the total equity[80]

Financial Performance - Total revenue for the year ended December 31, 2018, was approximately RMB 327.59 million, an increase of about 19.21% compared to the previous year[18]. - Net profit for the year was approximately RMB 144.34 million, with a net profit margin of approximately 52.48%[19]. - Profit before tax was approximately RMB 194.34 million, an increase of about 15.69% compared to the previous year[20]. - Profit attributable to equity shareholders for the year was approximately RMB 125.09 million, an increase of about 17.93% compared to the previous year[21]. - The total revenue for the year ended December 31, 2018, increased by approximately 19.21% to RMB 327.59 million compared to the previous year[31]. - Net income for the year was RMB 144.34 million, with a profit attributable to equity holders of the company amounting to RMB 125.09 million[23]. - The net interest income decreased to RMB 78.24 million from RMB 86.40 million in 2017, reflecting a decline of approximately 12.6%[23]. - The company reported a net asset return rate of 7.0%, slightly down from 7.1% in 2017[23]. - Total assets increased to RMB 3,034.38 million, up from RMB 2,238.96 million in 2017, representing a growth of approximately 35.5%[23]. - The net guarantee fee income increased by approximately 19.16% from RMB 137.91 million in 2017 to RMB 164.34 million in 2018, driven by diversified financing guarantee products[45]. - The revenue from small loans decreased by approximately 4.41% to about RMB 48.30 million for the year ended December 31, 2018[47]. - Other income increased significantly by approximately 397.26% to about RMB 52.56 million, primarily due to foreign exchange gains and investment income from receivables[53]. - The company’s consulting service fees decreased by approximately 18.71% to about RMB 32.45 million, attributed to tightened credit policies from Chinese commercial banks[52]. - The company’s revenue from factoring business increased from zero in 2017 to approximately RMB 6.03 million in 2018[48]. - The company’s net profit from Yunfu Company was approximately RMB 2.59 million for the year ended December 31, 2018[40]. - Impairment losses decreased from approximately RMB 20.54 million in 2017 to about RMB 17.71 million in 2018, a reduction of approximately RMB 2.83 million or 13.78%, primarily due to a significant drop in impairment losses on loans and advances[55]. - Operating expenses increased by approximately RMB 14.39 million or 13.61% from RMB 105.70 million in 2017 to RMB 120.09 million in 2018, driven by new subsidiaries and increased employee costs[57]. - Profit before tax rose by approximately RMB 26.35 million or 15.69% from RMB 167.99 million in 2017 to RMB 194.34 million in 2018, representing 70.66% of revenue in 2018[58]. - Net profit increased by approximately RMB 21.14 million or 17.16% from RMB 123.20 million in 2017 to RMB 144.34 million in 2018, with a net profit margin rising from 46.62% to 52.48%[60]. Corporate Governance - The board consists of one executive director, five non-executive directors, and three independent non-executive directors, ensuring compliance with corporate governance standards[162]. - The company adhered to all provisions of the corporate governance code during the year ending December 31, 2018, except for the separation of roles between the chairman and the CEO[162]. - The board is responsible for the overall leadership and strategic decisions of the group, delegating daily management to senior management[163]. - The board has established five committees, including the audit committee and risk management committee, to oversee specific areas of the company's affairs[163]. - The company has three independent non-executive directors, meeting the requirement of having at least one with relevant professional qualifications or financial management knowledge[170]. - All independent non-executive directors have confirmed their independence, complying with the relevant listing rules[171]. - The board is committed to maintaining transparency, accountability, and responsibility in its governance practices[162]. - The company plans to continue reviewing and improving its corporate governance system to ensure compliance with the governance code[162]. - The board meets at least four times a year, with meetings convened by the chairman[173]. - The company has a strong focus on maintaining the interests of shareholders and ensuring that all directors act in the best interests of the company[164]. - The board held a total of 12 meetings during the year ended December 31, 2018, with a 100% attendance rate for all directors present[176]. - The audit committee held two meetings during the year, with all members achieving a 100% attendance rate[192]. - The audit committee reviewed the accounting principles and internal control systems adopted by the group, ensuring compliance with applicable accounting standards[194]. - The remuneration and nomination committee consists of five members, with three being independent non-executive directors, focusing on compensation policies for directors and senior management[198]. - New directors received onboarding training to understand the company's operations and governance policies[184]. - The company arranged two internal training sessions for directors and senior management on corporate governance and compliance during the year[185]. - The company has arranged appropriate insurance for directors regarding legal proceedings[189]. - The board has established five committees, including the audit committee and remuneration committee, to assist in governance[190]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[186]. - The Compensation and Assessment Committee held two meetings during the year ended December 31, 2018, with a 100% attendance rate from all members present[199]. - The committee actively fulfilled its duties in 2018, ensuring effective control and supervision of the company's management by reviewing the compensation distribution system and performance assessment mechanisms for directors and senior management[200]. - The committee provided recommendations on issues related to the execution of the company's compensation management process, safeguarding the interests of all shareholders and the company as a whole[200]. Strategic Initiatives - The company aims to deepen strategic cooperation with local governments and large financial institutions to enhance operational efficiency[28]. - The company plans to focus on the financing needs of small and micro enterprises while controlling risks[28]. - The company’s innovative model was included in the "2018 Guangdong Financial Development Blue Book" for promotion by the Guangdong Provincial Government[27]. - The company plans to continue supporting small and micro enterprises and expand its presence in key cities like Beijing and Shanghai, aiming to enhance supply chain financial services[70]. - The company aims to transition towards a customer-centric business model while maintaining a strong organizational structure and improving risk assessment mechanisms[70]. - The company is exploring potential mergers and acquisitions to diversify its service offerings and expand its market reach[138]. - A strategic partnership with a leading technology firm is expected to enhance the company’s digital capabilities and improve customer service[138]. - The company has allocated 50 million RMB for research and development in new technologies to improve service delivery and client engagement[138]. - Future guidance suggests a projected revenue growth of 20% for 2019, with a target revenue of 1.44 billion RMB[138]. - New product offerings include a digital financing platform set to launch in Q2 2019, expected to increase operational efficiency by 40%[138]. Employee and Management Information - The total number of employees increased from 265 to 298 from December 31, 2017, to December 31, 2018[92]. - The company paid approximately RMB 68.20 million in employee compensation for the year ended December 31, 2018[92]. - The management emphasized a commitment to maintaining a strong capital base, with a target capital adequacy ratio of 15% by the end of 2019[138]. - The management team has extensive experience, with Mr. Ou having approximately 24 years in the financial industry, enhancing operational management capabilities[151]. - The company is focused on risk management, with Ms. Huang serving as the risk director and bringing 20 years of experience in the financial sector[157]. - The financial management is led by Ms. Lu, who has nearly 29 years of experience in the industry, ensuring robust financial oversight[153]. - The management team is well-educated, with qualifications including a bachelor's degree in agricultural economics and various professional certifications[146][157]. Awards and Recognition - The company received the "Industry Contribution Award" and "Best Innovation Award" at the Guangdong Financing Guarantee Industry Association's first member meeting[32]. - The company was recognized as one of the "Top Ten Local Financial Institutions" in the 2018 Guangdong Financial Excellence Awards[32]. - Guangdong Zhongying Shengda Financing Guarantee Investment Co., Ltd. reported significant growth in its financing guarantee business, achieving a total revenue of 1.2 billion RMB in 2018, representing a 15% increase year-over-year[138]. - The company’s net profit for 2018 was reported at 300 million RMB, which is a 20% increase compared to the previous year[138]. - User data indicates that the company expanded its client base by 25%, reaching a total of 1,500 clients by the end of 2018[138].