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].

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

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

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