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

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

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

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

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

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

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

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

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].