Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 71,344,000, an increase of approximately 19.4% compared to RMB 59,742,000 in 2023[6]. - The net profit for the same period was RMB 4,523,000, a decrease of approximately 58.9% from RMB 11,019,000 in 2023[6]. - The total assets as of December 31, 2024, amounted to RMB 1,135,179,000, a slight increase from RMB 1,131,801,000 in 2023[6]. - The total liabilities decreased to RMB 24,900,000 in 2024 from RMB 27,206,000 in 2023, indicating improved financial stability[6]. - The revenue for the reporting year was approximately RMB 71.3 million, an increase of about 19% compared to RMB 59.7 million in the previous year, primarily due to increased sales from the art and asset sales business and interest income from the pawn business[23]. - Revenue from the art and asset sales business was approximately RMB 54.5 million, a growth of about 28% from RMB 42.7 million in the previous year[22]. - The loss from the art and asset auction business was approximately RMB 0.4 million, compared to a profit of RMB 1.2 million in the same period last year, marking a significant decline[21]. - Other income decreased by approximately 38% to about RMB 1.3 million from RMB 2.1 million in the previous year, mainly due to reduced bank interest income[24]. - The cost of goods sold was approximately RMB 48.7 million, up from RMB 35.4 million in the previous year, reflecting the purchase cost of art sold during the reporting year[26]. - The pre-tax profit decreased by approximately 50% to about RMB 8.2 million from RMB 16.5 million in the previous year, primarily due to reduced profits from the art and asset pawn and sales businesses[33]. - Total comprehensive income for the year was approximately RMB 4.4 million, a decrease of about 60% from RMB 10.9 million in the previous year, mainly due to reduced profits[35]. Loan and Financing Activities - The company issued new loans totaling RMB 1,023,600,000 in 2024, up from RMB 702,400,000 in 2023, representing an increase of approximately 45.7%[18]. - The average initial loan term for new loans was 66 days in 2024, compared to 61 days in 2023[18]. - The company maintained a new loan renewal rate of 20% for new loans in 2024, down from 40% in 2023[18]. - The company is maintaining a cautious strategy in granting pawn loans to new clients, focusing on reducing credit risk[56]. Business Strategy and Development - The company is actively exploring new business models and strategies to enhance participation in the auction business despite facing challenges[11]. - The company aims to establish strategic partnerships in the art sector to leverage growth potential[11]. - The company plans to enhance auction strategies and increase regional and multi-channel marketing efforts to improve business performance[55]. - The company aims to establish strategic partnerships with galleries, artists, and cultural institutions to enhance market position and credibility[57]. - Future economic conditions are expected to remain challenging due to ongoing inflation and geopolitical tensions, requiring the company to remain flexible and responsive[54]. Governance and Compliance - The company has established a new committee to oversee compliance and regulatory matters, enhancing governance practices[63]. - The independent directors have been actively involved in strategic decision-making, contributing to a more robust governance framework[63]. - The company has adopted the corporate governance code and has complied with all relevant provisions during the reporting year[75]. - The board has established mechanisms to ensure independent opinions are obtained, including providing sufficient resources for directors to fulfill their duties[81]. - The company is committed to implementing good corporate governance and has established policies and procedures in line with the Hong Kong Stock Exchange's listing rules[75]. - The company has engaged an external auditor, Tianjian DeYang CPA Limited, with no changes in the past three years[105]. Risk Management - The company faces various risks, including market risk primarily from the Chinese economy and compliance risk with local and overseas laws[119][120]. - The company has implemented internal controls to monitor significant risks and ensure they do not adversely affect business performance[118]. - The risk management committee did not hold any meetings during the reporting year but participated in discussions and reviews of the risk management and internal control systems[95]. - All departments conduct regular internal control assessments to identify potential risks affecting the group's business[100]. Shareholder and Equity Information - Major shareholders include Hanxin Investment Limited, holding approximately 59.64% of the shares, and other entities with similar stakes[151]. - The largest customer accounted for approximately 25.8% of the group's revenue for the year ending December 31, 2024, up from 19.4% in 2023[157]. - The top five customers collectively represented about 64.2% of the group's revenue, slightly down from 65.1% in 2023[157]. - The largest supplier accounted for approximately 22.0% of the group's total procurement, a decrease from 36.7% in 2023[157]. - The top five suppliers made up about 51.4% of the group's total procurement, significantly down from 95.2% in 2023[157]. Employee and Diversity Initiatives - Employee costs increased by approximately 69% to about RMB 5.9 million from RMB 3.5 million in the previous year, due to the hiring of additional staff to strengthen business operations[28]. - The board consists of 2 female directors and 4 male directors, achieving gender diversity at the board level[84]. - As of December 31, 2024, the gender distribution among employees is 48% female and 52% male[84]. - The company has implemented measures to promote gender diversity at all levels, including the board and management[84]. - The company will ensure gender diversity is considered in the recruitment of senior staff and provide resources for training and career development[84]. Contractual Arrangements and Compliance - The company has established contractual arrangements to effectively control its operations in China, ensuring compliance with local laws[170]. - Legal opinions confirm that the contractual arrangements are valid, binding, and enforceable under current Chinese law[171]. - The structural contracts for He Xin Pawnshop and He Xin Auction were established on April 15, 2016, with supplementary agreements made on October 24, 2016[177][179]. - The company is required to provide operational and financial information to the foreign-invested enterprise as part of its commitments[187]. - The equity holders must notify the foreign-invested enterprise of any potential litigation or administrative proceedings involving He Xin Pawn's assets or business[187].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 71,344,000, an increase of 19.4% compared to RMB 59,742,000 in 2023[4] - Net profit attributable to equity holders for the year was RMB 4,523,000, a decrease of 58.9% from RMB 11,019,000 in the previous year[4] - Basic earnings per share for the year was RMB 0.27, down from RMB 0.66 in 2023, reflecting a decline of 59.1%[4] - The company reported a gross profit of RMB 22,664,000 for the year, compared to RMB 24,389,000 in 2023, indicating a decrease of 7.1%[4] - Operating expenses increased to RMB 8,216,000, down from RMB 16,493,000 in the previous year, showing a significant reduction of 50.2%[4] - The company reported a net loss of RMB 361 thousand in the auction business for 2024, compared to a profit of RMB 1,155 thousand in 2023, marking a significant downturn[21] - The company reported a net profit of RMB 3,693,000 for 2024, compared to RMB 5,474,000 in 2023, reflecting a decrease of approximately 32.5%[30] - The total comprehensive income for the year decreased by approximately RMB 6.5 million or about 60% to approximately RMB 4.4 million, primarily due to a reduction in profits during the reporting year[61] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,110,465,000, a slight increase from RMB 1,105,406,000 in 2023[5] - The company’s total liabilities decreased to RMB 24,714,000 from RMB 26,395,000, reflecting a reduction of 6.4%[5] - The total liabilities for accrued expenses and other payables in 2024 are RMB 23,065,000, compared to RMB 23,423,000 in 2023, reflecting a decrease of approximately 1.5%[37] - The company’s designated non-current assets, including property and equipment, were valued at RMB 933,000 in 2024, compared to RMB 1,727,000 in 2023, indicating a decrease of approximately 46%[25] - The debt-to-asset ratio increased to 1.6% in 2024 from 1.2% in 2023[65] Revenue Breakdown - Revenue from art and asset sales amounted to RMB 54,451,000, reflecting a growth of 27.5% from RMB 42,699,000 in the previous year[16] - Interest income from art and asset pawn business was RMB 16,499,000, up from RMB 15,136,000, indicating an increase of 9%[16] - The auction revenue decreased significantly to RMB 394,000 from RMB 1,907,000, representing a decline of 79.3%[16] - Revenue from external customers in China (excluding Hong Kong) for 2024 reached RMB 71,344,000, an increase from RMB 59,742,000 in 2023, representing a growth of approximately 19.5%[25] - Revenue from the art and asset auction business was approximately RMB 16.5 million, an increase of about 9% compared to RMB 15.1 million in the same period last year[44] - Revenue from the art and asset sales business for the reporting year was approximately RMB 54.5 million, an increase of about 28% compared to RMB 42.7 million in the same period last year[48] Cash Flow and Investments - For the year ending December 31, 2024, the net cash flow from operating activities was approximately RMB (47,802) thousand, a decrease from RMB 75,612 thousand in 2023[63] - As of December 31, 2024, the total cash and bank balance decreased by 6.1% to approximately RMB 653.6 million from RMB 695.8 million as of December 31, 2023[63] - The company has no plans for significant investments or acquisitions as of the date of the announcement[69] Corporate Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, with all figures rounded to the nearest thousand in Renminbi[7] - The company is committed to maintaining compliance with the Hong Kong Stock Exchange listing rules and relevant company regulations[7] - The company has adopted corporate governance principles in compliance with the Hong Kong Stock Exchange listing rules[85] Future Outlook and Strategy - The company plans to focus on market expansion and new product development in the upcoming year[3] - The company is currently analyzing the impact of the new Hong Kong Financial Reporting Standards on its consolidated financial statements[13] - The company is focusing on expanding its market presence and enhancing its auction services to drive future growth[19] - The global economic environment is expected to remain challenging due to ongoing inflation and geopolitical tensions, impacting business operations in China[79] - The group is actively adjusting its auction strategy to enhance regional and multi-channel market promotion efforts[80] Employee and Operational Metrics - Employee costs increased by approximately RMB 2.4 million or about 69% to approximately RMB 5.9 million, due to the hiring of additional staff to strengthen business operations and development[54] - The group employed a total of 44 staff members as of December 31, 2024, with compensation policies based on performance and market practices[72]

Revenue and Profit Performance - Revenue for the six months ended June 30, 2024, increased by approximately 484.1% to about RMB 36.8 million, primarily due to increased sales from the art and asset sales business and higher average loan balances in the art and asset pawn business[7]. - Revenue from the art and asset pawn business was approximately RMB 10.9 million, an increase of about 75.8% compared to RMB 6.2 million in the same period last year[3]. - Profit from the art and asset pawn business was approximately RMB 8.9 million, up about 11.3% from RMB 8.0 million in the previous year[3]. - Revenue from the art and asset sales business was approximately RMB 25.8 million, with a profit of about RMB 1.3 million, compared to a loss of RMB 0.1 million in the same period last year[6]. - Profit before tax increased by approximately 44.6% to about RMB 8.1 million, driven by increased revenue from art and asset sales[11]. - Net profit for the six months ended June 30, 2024, increased by approximately 58.8% to about RMB 5.4 million[11]. - The net profit attributable to the owners of the company for the same period was RMB 5,416,000, compared to RMB 3,435,000 in 2023, reflecting an increase of about 57.5%[40]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 0.32, up from RMB 0.20 in the previous year, indicating a growth of 60%[40]. Costs and Expenses - Employee costs increased by approximately RMB 1.0 million or about 83.3% to approximately RMB 2.2 million due to the hiring of additional staff to strengthen business operations[10]. - The cost of goods sold for the art and asset sales business was approximately RMB 23.0 million, reflecting the purchase cost of art sold during the review period[9]. - Advertising and promotional expenses rose by approximately RMB 1.2 million to enhance brand value and promote business activities in China[11]. - The company recorded a net impairment loss of RMB (99) thousand for customer loans related to the art and asset pawn business for the six months ended June 30, 2024, compared to a gain of RMB 2,767 thousand in the same period of 2023[77]. - The income tax expense for the six months ended June 30, 2024, was RMB 2,732 thousand, an increase from RMB 1,671 thousand in the previous year[79]. Cash Flow and Financial Position - As of June 30, 2024, the group had cash and bank balances totaling approximately RMB 684.2 million, a decrease of 1.7% from RMB 695.8 million as of December 31, 2023[12]. - For the six months ended June 30, 2024, the company reported a net cash outflow from operating activities of RMB (14,927) thousand, compared to a net inflow of RMB 248,496 thousand for the same period in 2023[45]. - The company reported a foreign exchange loss of RMB 74 thousand for the six months ended June 30, 2024, compared to a loss of RMB 211 thousand in the same period of 2023[83]. - The company's total assets as of June 30, 2024, were RMB 1,111,283 thousand, an increase from RMB 1,096,891 thousand as of December 31, 2023[43]. - The company’s total liabilities as of June 30, 2024, were RMB 468,031 thousand, reflecting a slight increase from RMB 466,000 thousand at the end of 2023[43]. Shareholder Information and Corporate Governance - As of June 30, 2024, the company's executive officer, Fan Zhijun, holds a significant interest of 1,000,768,000 shares, representing approximately 59.64% of the total shares[25]. - Major shareholders, including Hanxin Investment and Jinsand Investment, each hold 1,000,768,000 shares, also representing approximately 59.64% of the total shares[29]. - The company maintains a robust governance structure with significant shareholding by its executives, ensuring alignment of interests[25]. - The company has established an audit committee to oversee financial reporting and internal controls, comprising three independent non-executive directors[35]. Business Strategy and Future Outlook - The company plans to enhance auction strategies and increase regional, multi-channel marketing efforts to improve business performance[20]. - The company plans to continue its market expansion and product development strategies in the upcoming periods[48]. - The company is focused on expanding its art sales business through strategic acquisitions and partnerships[22]. - The financial performance is projected to improve significantly due to the planned sales and auction activities in the upcoming period[22]. - The company has successfully identified suitable artworks for sale in 2024, aiming to generate profits through acquisition and sales price differentials, agency service income, and auction commissions[22]. Segment Performance - The art and asset pawn business generated segment revenue of RMB 10,931,000, while the auction business generated RMB 6,000, and the sales business generated RMB 25,841,000[63]. - The total segment profit for the first half of 2024 was RMB 9,892,000, compared to RMB 7,650,000 in the same period of 2023, showing an increase of about 29%[63]. - Revenue from external customers in mainland China (excluding Hong Kong) for the six months ended June 30, 2024, was RMB 36,778 thousand, a significant increase from RMB 6,307 thousand in the same period of 2023[75]. Employee Compensation - For the six months ended June 30, 2024, the total compensation for key management personnel was RMB 732,000, an increase of 17.3% from RMB 620,000 for the same period in 2023[101]. - Salaries and other benefits for key management personnel amounted to RMB 647,000, up from RMB 555,000 in the prior year, reflecting a growth of 16.5%[101]. - Contributions to retirement benefit plans for key management personnel increased to RMB 85,000, compared to RMB 65,000 in the previous year, representing a rise of 30.8%[101].

Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 36,778,000, an increase of 484.5% compared to RMB 6,307,000 for the same period in 2023[2] - The company reported a gross profit of RMB 13,828,000 for the period, with a gross margin improvement due to increased sales volume[2] - Revenue from art and asset sales business reached RMB 25,841 thousand, with no revenue reported in the same period of 2023, marking a new revenue stream for the company[11] - Interest income from art and asset pawn business was RMB 10,931 thousand for the six months ended June 30, 2024, compared to RMB 6,195 thousand in the same period of 2023, reflecting an increase of approximately 76%[11] - For the six months ended June 30, 2024, the total revenue from the art and asset auction business was RMB 36,778,000, compared to RMB 6,307,000 for the same period in 2023, representing a significant increase[15] - Revenue from the art and asset pawn business generated revenue of approximately RMB 10.9 million, an increase of approximately 75.8% compared to RMB 6.2 million in the same period last year[37] Profitability - The net profit attributable to owners of the company for the period was RMB 5,416,000, up 57.5% from RMB 3,435,000 in the previous year[2] - Basic and diluted earnings per share increased to RMB 0.32, compared to RMB 0.20 for the same period last year, reflecting a growth of 60%[2] - The total segment profit for the art and asset auction business was RMB 9,892,000 for the six months ended June 30, 2024, compared to RMB 7,650,000 for the same period in 2023, indicating a growth of approximately 29.3%[16] - The company reported a pre-tax profit of RMB 8,085,000 for the six months ended June 30, 2024, compared to RMB 5,648,000 for the same period in 2023, reflecting an increase of about 43.1%[16] - The profit from the art and asset pawn business was approximately RMB 8.9 million, up about 11.3% from RMB 8.0 million in the previous year[37] Expenses and Costs - Employee costs rose to RMB 2,240,000 from RMB 1,174,000, marking an increase of 90.6% year-over-year[2] - The cost of goods sold was approximately RMB 23.0 million, reflecting the purchase cost of art sold to customers during the review period[43] - Advertising and promotion expenses increased by approximately RMB 1.2 million to enhance brand value and promote related business activities in China[48] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,112,003,000, slightly up from RMB 1,105,406,000 at the end of 2023[3] - The net asset value of the company increased to RMB 1,111,283,000 from RMB 1,104,595,000, indicating a growth of 0.6%[3] - The accounts receivable from art and asset pawn customers was RMB 437,234 thousand as of June 30, 2024, compared to RMB 426,251 thousand as of December 31, 2023, reflecting a slight increase[28] - The total accounts receivable, net of impairment, was RMB 433,310 thousand as of June 30, 2024, compared to RMB 422,426 thousand as of December 31, 2023[29] - The company reported accrued expenses of RMB 2,581 thousand as of June 30, 2024, down from RMB 4,585 thousand as of December 31, 2023, indicating a decrease in liabilities[30] Strategic Initiatives - The company plans to expand its market presence and invest in new product development to sustain growth in the upcoming quarters[4] - The company is focused on expanding its art and asset sales and auction services in mainland China, excluding Hong Kong[12] - The company has implemented a strategy to enhance its financial and operational control over its subsidiaries in the pawn and auction sectors[6] - The company aims to leverage exclusive technical and management support services to maximize economic returns from its subsidiaries[6] - The company plans to hold more large-scale auctions and related activities in collaboration with local governments[38] Financial Management - The company has established financial risk management policies to ensure all payables are settled within credit terms[30] - The group has a debt-to-equity ratio of 1.4% as of June 30, 2024, compared to 1.2% on December 31, 2023[54] - The company had no bank borrowings or significant pledged assets as of June 30, 2024[52] - The company has not identified any single external customer contributing more than 10% of total revenue for the six months ended June 30, 2023[20] Compliance and Governance - The company has adhered to the standards set forth in the Listing Rules Appendix C3 regarding securities trading by directors for the six months ending June 30, 2024[67] - The company has consistently complied with the Corporate Governance Code as outlined in the Listing Rules Appendix C1 during the six months ending June 30, 2024[68] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[66] Market Outlook - The outlook indicates ongoing challenges in the global economic environment due to inflation and geopolitical tensions, but improvements in the Chinese economy are expected to positively impact business in the coming months[59] - The group is actively adjusting its auction strategy to enhance regional and multi-channel market promotion[60] - The group is focusing on strengthening risk management strategies to mitigate credit risks in its pawn loan business[61] - The group has identified suitable art pieces for sale in 2024, aiming to generate profits through various sales strategies[62]

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was RMB 59,742,000, a significant increase from RMB 27,338,000 in 2022, representing a growth of approximately 119%[6] - The net profit for the year was RMB 11,019,000, down from RMB 14,596,000 in 2022, indicating a decrease of about 24%[6] - The total assets amounted to RMB 1,131,801,000, slightly up from RMB 1,108,546,000 in 2022, reflecting an increase of approximately 2%[6] - The total liabilities increased to RMB 27,206,000 from RMB 14,890,000 in 2022, marking an increase of about 83%[6] - Other income decreased by approximately 26% to about RMB 2.1 million, mainly due to a reduction in bank interest income[21] - The cost of goods sold was approximately RMB 35.4 million, reflecting the purchase cost of art sold during the year[24] - Pre-tax profit decreased by approximately 25% to about RMB 16.5 million from last year's RMB 21.9 million[31] - Total comprehensive income for the year decreased by approximately 25% to about RMB 10.9 million from last year's RMB 14.5 million[34] - As of December 31, 2023, the net cash flow from operating activities was RMB 75.6 million, compared to a cash outflow of RMB 109.7 million last year[36] - As of December 31, 2023, the group had no capital expenditure related to properties, plants, and equipment for the fiscal year[41] Business Segments - The group has three business segments: (i) art and asset pawn business; (ii) art and asset auction business; and (iii) art and asset sales business[49] - Revenue from the art and asset pawn business was approximately RMB 15,100,000, a decrease of about 44% compared to RMB 27,000,000 in the previous year[14] - The profit from the art and asset pawn business was around RMB 14,000,000, down approximately 46% from RMB 26,200,000 in the previous year[14] - Revenue from the art and asset auction business was approximately RMB 1.9 million, an increase of about 461% compared to last year's RMB 0.3 million[17] - Profit from the art and asset auction business was approximately RMB 1.2 million, recovering from a loss of about RMB 1.1 million last year[17] - Revenue from the art and asset sales business was approximately RMB 42.7 million, a growth of 100% compared to last year[19] - Profit from the art and asset sales business was approximately RMB 4.9 million, recovering from a loss of about RMB 0.3 million last year[19] Future Outlook and Strategy - The company aims to leverage its unique advantages to become the largest comprehensive service provider in the Chinese art finance market[11] - The group plans to adopt a conservative approach when granting pawn loans to new clients in 2024, anticipating an increase in loan risks[57] - The group expects to resume art auction activities in 2024, following the relaxation of COVID-19 restrictions[56] - The company has set a future outlook with a revenue target of 1.5 billion for the next fiscal year, indicating a projected growth of 25%[67] - New product development includes the launch of a digital auction platform, expected to enhance user engagement and increase transaction volume by 30%[67] - The company is expanding its market presence by entering three new provinces in China, aiming to increase market share by 10% in these regions[67] - A strategic acquisition of a local competitor is in progress, which is anticipated to add 200,000 new users and increase overall market penetration[67] - The company is investing 50 million in technology upgrades to improve operational efficiency and customer experience[67] Corporate Governance - The company reported a commitment to good corporate governance and compliance with the corporate governance code as per the Stock Exchange listing rules[77] - The board of directors includes experienced professionals with over 27 years in accounting and finance, ensuring strong governance and oversight[65] - The board of directors held nine meetings during the reporting year, with attendance rates varying among members[81] - The company has appointed at least three independent non-executive directors, meeting the requirement of one-third of the board[82] - The independent non-executive directors confirmed their independence in accordance with the listing rules[82] - The company has established a nomination committee responsible for reviewing board composition and overseeing the appointment of directors[83] - The executive directors have service contracts lasting three years, with a two-month notice period for termination[83] - The company has implemented a code of conduct for directors regarding securities trading, ensuring compliance with required trading standards[78] - The board has delegated various responsibilities to committees, including the audit committee and risk management committee[79] - The company emphasizes continuous professional development for all directors, ensuring they stay updated on regulatory developments and corporate governance[98] Risk Management - The management team emphasized the importance of risk management and internal controls, reflecting the founder's banking background[68] - The company has implemented various risk management procedures and guidelines to ensure effective internal controls, with regular assessments conducted across all departments to identify potential risks[102] - The company is focused on enhancing internal controls and risk management policies under the supervision of the internal control director[73] - The Risk Management Committee did not hold any meetings during the year, indicating a potential area for improvement in risk oversight[97] - The company faces significant market risks due to its reliance on the Chinese economy and the art pawn loan and auction market, which could impact financial performance[117] Shareholding Structure - As of December 31, 2023, Mr. Fan Zhijun holds a controlling interest in the company with 1,000,768,000 shares, representing approximately 59.64% of the total shares[149] - Mr. Fan Zhijun also has a short position of 1,000,384,000 shares, which is about 59.62%[149] - The company has no other individuals or entities holding 5% or more of the shares as of December 31, 2023[156] - The shareholding structure indicates significant control by Mr. Fan Zhijun and related parties, with multiple entities under his influence[154] - The total number of shares held by major shareholders, including Mr. Fan Zhijun, is consistent across various entities, indicating a concentrated ownership structure[154] Compliance and Legal Matters - Compliance with local and overseas laws and regulations is critical for the company's operations, and it continuously monitors relevant legal compliance[118] - The company has established compliance procedures to ensure adherence to environmental laws impacting operations[133] - Legal advisors have confirmed that the contractual arrangements are valid and enforceable under current Chinese law[176] - The company has established contractual arrangements to control its operations in China, ensuring compliance with local laws and regulations[181] Employee and Compensation Policies - As of December 31, 2023, the group had a total of 33 employees, with compensation policies based on performance, qualifications, experience, and market practices[44] - The company has established a compensation policy for directors and senior management based on performance and contributions to the group[104] - The company has established a compensation committee to review its compensation policies based on overall performance, individual performance, and market practices[162] Audit and Financial Reporting - The Audit Committee's main responsibilities include recommending the appointment and dismissal of external auditors and reviewing financial statements[87] - The audit committee reviewed the group's accounting principles and policies, as well as internal controls and financial reporting matters for the year ended December 31, 2023[161] - The total fees paid to the external auditor for the year ended December 31, 2023, amounted to RMB 2,204,000, which includes RMB 1,709,000 for audit services and RMB 495,000 for non-audit services[107] - The company has maintained a consistent external auditor, Tianjian DeYang CPA Limited, for the past three years[106] Significant Events and Changes - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with the previous year[135] - There were no major events occurring after December 31, 2023[129] - The company has undergone changes in its board of directors, with several appointments and resignations noted[146] - The company has not made any significant changes to its articles of association during the year[114] - The company has made no purchases, sales, or redemptions of its listed securities during the year ending December 31, 2023[143]

Revenue and Profitability - Total revenue for 2023 reached RMB 59,742 million, compared to RMB 27,338 million in 2022, representing a growth of approximately 118%[11] - The revenue breakdown for 2023 includes RMB 15,136 million from the art and asset pawn business, RMB 1,907 million from the art and asset auction business, and RMB 42,699 million from the art and asset sales business[5] - The total operating profit before tax for 2023 was RMB 16,493 million, a decrease from RMB 21,943 million in 2022, indicating a decline of about 25%[5] - The art and asset sales business generated a profit of RMB 4,938 million in 2023, compared to a loss of RMB 311 million in 2022, indicating a turnaround in performance[5] - Net profit for 2023 was RMB 11,019,000, down from RMB 14,596,000 in 2022, indicating a decline of about 24.5%[19] - The company's other income for 2023 was RMB 2,103 million, a decrease from RMB 2,831 million in 2022, indicating a decline in ancillary revenue streams[5] - The total comprehensive income decreased by approximately RMB 3.6 million or about 25% to approximately RMB 10.9 million in the reporting year, primarily due to a reduction in profits[66] Costs and Expenses - The total cost of revenue for 2023 was RMB 41,327 million, up from RMB 4,192 million in 2022, reflecting a significant increase in operational expenses[5] - The company’s central administrative expenses for 2023 were RMB 5,662 million, compared to RMB 4,947 million in 2022, showing an increase of approximately 14%[5] - The company reported inventory costs of RMB 35,353,000 for the year ended December 31, 2023, compared to no inventory costs reported in 2022[22] - Employee costs increased by approximately 8% to about RMB 3.5 million, due to the hiring of additional staff to strengthen business operations[52] Financial Position - The company’s income tax expense for 2023 was RMB 5,119,000, a decrease from RMB 6,580,000 in 2022, reflecting a reduction of approximately 22.2%[14] - The debt-to-equity ratio was 1.2% for 2023, compared to 0.7% in 2022, indicating a slight increase in leverage[64] - As of December 31, 2023, net working capital was approximately RMB 1,102.4 million, an increase of approximately RMB 10.9 million from the previous year[61] - The current ratio as of December 31, 2023, was 42.8 times, compared to 75.4 times in the previous year[61] - Total assets net of current liabilities amounted to 1,105,406,000 RMB, an increase from 1,093,879,000 RMB[117] - Current assets totaled 1,128,844,000 RMB, compared to 1,106,148,000 RMB in the previous period[117] - Cash and cash equivalents increased to 695,818,000 RMB from 612,418,000 RMB[117] Customer and Market Insights - Major customers contributing over 10% of total revenue include Customer A with RMB 115,811, Customer B with RMB 98,452, Customer C with RMB 79,203, and Customer D with RMB 68,512 for the year 2023[13] - The total revenue from external customers in mainland China (excluding Hong Kong) was RMB 59,742 million in 2023, reflecting the company's strong market presence[11] - The company has actively sought new auction formats and communicated with local governments regarding the suitability of holding large auctions and related activities[41] - The company has adjusted its marketing strategies in response to the highly unstable environment in both international and domestic markets[38] Risk Management and Compliance - The company has implemented effective risk management systems to mitigate various risks faced by the art and asset pawn business[40] - The company has established a multi-layer internal approval system and effective risk management protocols[40] - The company established an audit committee to oversee financial reporting processes and internal controls, consisting entirely of independent non-executive directors[105] - The company anticipates that the application of all revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[109] Future Outlook and Strategic Initiatives - The global economic environment is expected to remain challenging and uncertain due to ongoing inflation and geopolitical tensions, impacting the domestic economy in China[86] - The company anticipates a positive impact on business in the coming years following the relaxation of COVID-19 restrictions and the reopening of borders in early January 2023[86] - The company plans to resume art auction activities in 2024, ensuring a safe environment for large auctions and related events[87] - The group will adopt a conservative approach when granting loans to new clients in 2024, aiming to minimize credit risk amid rising loan risks[88] - The board has decided to reallocate the unutilized net proceeds originally intended for enhancing the online auction platform and developing the online loan financing platform to art trading, which is expected to generate profits for the group[83] Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, compared to no dividend in 2022[18] - Basic earnings per share for 2023 was RMB 0.66, down from RMB 0.87 in 2022, a decline of 24.1%[114] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023[90] Changes in Operations - The company has established a full subsidiary in China for art and asset auction services[121] - The company is focused on expanding its market presence through strategic partnerships and acquisitions[123] - The company has not conducted any significant acquisitions or disposals of subsidiaries or joint ventures for the year ending December 31, 2023[84]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示不會就本公佈全部或任 何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 CHINA ART FINANCIAL HOLDINGS LIMITED 中 國 藝 術 金 融 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1572） 有關截至2023年6月30日止六個月的 中期業績公佈的 補充公佈 茲提述中國藝術金融控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於 二零二三年八月三十一日所刊發有關本集團截至二零二三年六月三十日止六個月 的中期業績公佈（「該公佈」）。除另有指明外，本公佈所用詞彙與該公佈所界定者 具有相同涵義。 本公佈旨在就該公佈「管理層討論及分析─業務回顧」及「展望及前景」兩節有關本 集團的藝術品及資產拍賣業務（「拍賣業務」）、藝術品及資產典當貸款業務（「典當 業務」）以及藝術品及資產銷售業務（「藝術品銷售業務」）的業務計劃及策略提供補 充資料。 拍賣業務 ...

Revenue Performance - During the six months ended June 30, 2023, the revenue decreased by approximately 68.4% to about RMB 6.3 million compared to the same period last year, primarily due to a reduction in the average loan balance of art and asset pawn loans and a decrease in loan interest rates [8]. - The revenue from the art and asset pawn loan business was approximately RMB 6.2 million, a decrease of about 68.9% from approximately RMB 19.9 million in the same period last year [4]. - The group reported a 68.4% decrease in revenue compared to the same period last year, but still achieved a profit before tax of approximately RMB 5.6 million [35]. - Total revenue for the six months ended June 30, 2023, was RMB 6,307,000, a decrease of 68.4% compared to RMB 19,953,000 for the same period in 2022 [64]. - Revenue generated from external customers for the six months ended June 30, 2023, was RMB 6,307 thousand, a decrease from RMB 19,953 thousand for the same period in 2022 [106]. Profit and Loss - The profit from the art and asset pawn loan business was approximately RMB 8.0 million, down about 62.1% from approximately RMB 21.2 million in the previous year [4]. - The net profit for the period was approximately RMB 3.4 million, a decrease of about 75.6% compared to the same period last year [17]. - Net profit attributable to owners for the period was RMB 3,435,000, a decline of 75.6% from RMB 14,050,000 in the previous year [64]. - Basic and diluted earnings per share were both RMB 0.20, down from RMB 0.84 in the same period last year [64]. - The income tax expense for the six months ended June 30, 2023, was RMB 2,213 thousand, significantly lower than RMB 5,918 thousand for the same period in 2022 [111]. Expenses and Costs - The operating expenses decreased by approximately 8.4% to about RMB 0.8 million, mainly due to a reduction in employee costs [11]. - The administrative expenses increased by approximately 61.4% to about RMB 3.9 million, primarily due to increased legal and professional fees [13]. - The company’s administrative expenses rose to RMB 3,886,000, up from RMB 2,407,000 in the same period last year, indicating a 61.5% increase [64]. - Total employee costs for the six months ended June 30, 2023, were RMB 1,174 thousand, down from RMB 1,443 thousand in the same period of 2022 [114]. - The total accrued expenses and other payables increased to RMB 15,751 as of June 30, 2023, compared to RMB 13,147 as of December 31, 2022, reflecting a rise of 19.9% [126]. Cash and Assets - As of June 30, 2023, the total cash and bank balances amounted to approximately RMB 865.1 million, an increase of 41.3% from approximately RMB 612.4 million as of December 31, 2022 [21]. - Cash and cash equivalents at the end of the period were RMB 865,098,000, an increase from RMB 612,418,000 at the beginning of the period [72]. - The company reported a net cash increase of RMB 252,679,000 for the six months ended June 30, 2023, compared to RMB 142,021,000 in the previous year [72]. - Total assets as of June 30, 2023, were RMB 1,112,750,000, slightly up from RMB 1,106,148,000 at the end of 2022 [67]. - The group’s total non-current assets as of June 30, 2023, were RMB 789 thousand, a decrease from RMB 1,011 thousand as of December 31, 2022 [106]. Shareholder Information - Major shareholders, including Ms. Zhang Xiaoxing and Hanxin Investment, collectively own approximately 59.64% of the company's issued share capital, totaling 1,000,768,000 shares [44]. - The ownership structure indicates that Hanxin Investment is 69.5% owned by Jinsand Investment, which is further controlled by Ziyu Investment [47]. - The company has established a confirmation letter for unified action among major shareholders to ensure consistent decision-making [42]. - The beneficial ownership percentages indicate a concentrated ownership model, which may impact shareholder dynamics and corporate governance [44]. - The company has complied with the Securities and Futures Ordinance regarding the disclosure of shareholdings and interests [46]. Strategic Initiatives - The group plans to reassess its market operating strategy for art and asset pawn businesses to attract new customers and increase loan sizes [35]. - The unutilized net proceeds from the IPO amounting to HKD 237.7 million will be fully allocated to art trading by December 2023 [34]. - The group has established a professional authentication and appraisal team to inspect the authenticity and assess the value of artworks [31]. - The group has shifted its focus from enhancing online auction platforms to buying and selling artworks due to underperformance in online investments [31]. - The board has decided to reallocate unutilized proceeds originally intended for online platforms to art trading, which is expected to be more beneficial for business development [32]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the listing rules during the six months ended June 30, 2023 [57]. - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023, with no objections to the accounting treatments adopted by the company [52]. - The company has engaged legal advisors to review its contractual arrangements, confirming their validity and enforceability under current Chinese law [61]. - The company has established contractual arrangements to control its operations in China through wholly-owned subsidiaries, ensuring effective control over financial and operational policies [60]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023 [51]. Employment and Management - As of June 30, 2023, the group employed 23 staff members, down from 28 as of December 31, 2022 [28]. - The total remuneration for key management personnel decreased to RMB 620 for the six months ended June 30, 2023, from RMB 688 in 2022, a decline of 9.9% [142]. - The company appointed new directors during the review period, with changes effective from January 18, 2023, and February 7, 2023 [58]. - The company has not recognized any share-based payment expenses for the six months ended June 30, 2023, as all options had expired by that date [135]. - The company has not entered into any arrangements granting directors the right to acquire the company's securities during the six months ended June 30, 2023 [54].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 CHINA ART FINANCIAL HOLDINGS LIMITED 中 國 藝 術 金 融 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1572） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 佈 中國藝術金融控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月之未經審核簡 明綜合中期業績連同去年同期比較數字如下： 簡明綜合損益及其他全面收益表 截至2023年6月30日止六個月 截至6月30日止六個月 2023年 2022年 附註 人民幣千元 人民幣千元 （未經審核） （未經審核） ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA ART FINANCIAL HOLDINGS LIMITED 中 國 藝 術 金 融 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1572） 有關本公司截至2022年12月31日止年度之年報之 補充公佈 謹此提述中國藝術金融控股有限公司（「本公司」，連同其附屬公司統稱為「本集 團」）於2023年4月27日刊發之截至2022年12月31日止年度之年報（「2022年年 報」）。除另有所指外，本公佈所用詞彙與2022年年報所界定者具有相同涵義。 本公佈乃就提供補充資料而作出，內容有關2022年年報中「管理層討論及分析— 展望及前景」一節中有關本集團藝術品及資產拍賣業務（「拍賣業務」）及藝術品及 資產典當業務（「典當業務」）之業務計劃及策略。 拍賣業務 舉辦更多拍賣活動 隨著全國放鬆COVID-19防疫措施限制及中國於2023年1月初重新開放所有邊境， ...