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]

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].