Financial Performance - For the year ended December 31, 2024, the company's net interest income was RMB 112.3 million, and net profit was RMB 96.3 million, with a loan balance reaching RMB 727.7 million[8]. - The total amount of loans granted to customers was RMB 888.2 million, generating interest income of RMB 112.7 million during the reporting period[13]. - The company's capital net amount decreased from RMB 1,268.5 million in 2023 to RMB 1,221.2 million in 2024, while the loan to capital net amount ratio improved from 0.73 times to 0.60 times[13]. - The loan principal balance decreased from RMB 925.9 million as of December 31, 2023, to RMB 727.7 million as of December 31, 2024, due to adjustments in loan scale in response to changes in credit policies[15]. - The company reported a significant increase in overdue loans primarily due to temporary cash flow difficulties faced by borrowers[21]. - The overdue loan balance rose to RMB 190.1 million in 2024, representing 26.0% of the total loan balance, up from RMB 108.3 million or 11.7% in 2023[21]. - The non-performing loan ratio improved to 3.7% as of December 31, 2024, down from 7.9% as of December 31, 2023, primarily due to the recovery of RMB 455 million in substandard loans[27]. - The provision coverage ratio increased significantly to 216.9% as of December 31, 2024, compared to 92.8% in the previous year, indicating a stronger buffer against potential loan losses[26]. - Interest income from loans decreased to RMB 112.7 million in 2024 from RMB 140.2 million in 2023, reflecting a decline in the outstanding balance of non-performing loans[32]. - Net profit increased from RMB 76.2 million in 2023 to RMB 96.3 million in 2024, with profit attributable to equity holders rising from RMB 64.8 million to RMB 91.7 million[48]. Loan Portfolio and Risk Management - The proportion of revolving loans increased to 72.3% in 2024, compared to 67.9% in 2023, while term loans decreased to 27.7% from 32.1%[17]. - The company has a significant portion of its loans secured, with 52.0% backed by collateral in 2024, compared to 41.1% in 2023[18]. - Loans with a maturity of less than one year accounted for 94.4% of the total loan balance as of December 31, 2024[20]. - The loan portfolio includes a diverse range of borrowers, with 44.8% of loans being less than RMB 1 million in 2024[22]. - The company has implemented a comprehensive risk assessment system to ensure steady improvement in loan quality[9]. - The company faces various risks including credit risk, foreign exchange risk, interest rate risk, price risk, and liquidity risk[126]. - The company has established risk management and internal control systems to monitor operations and compliance, but cannot guarantee the detection of non-compliance events[126]. Economic Environment and Strategic Outlook - The external economic environment remains uncertain due to geopolitical conflicts and trade protectionism, impacting domestic economic stability[8]. - The global economy is expected to maintain stable growth into 2025, with developed economies like the US and Europe experiencing a slight slowdown, while emerging markets such as China and India continue to show strong growth[86]. - Domestic economic operation shows positive factors, but insufficient domestic demand remains the biggest constraint[86]. - The government will continue to strengthen macroeconomic regulation, deepen reform and opening up, and expand domestic demand to promote high-quality economic development[86]. - The company plans to innovate financial products to meet diverse customer needs and expand customer channels to enhance brand influence[86]. - The company aims to improve service efficiency and optimize customer experience while strengthening team building and enhancing professional capabilities[86]. Corporate Governance and Compliance - The company has complied with all major regulatory capital requirements and lending limits as of December 31, 2024, ensuring adherence to financial regulations[29]. - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee to oversee various matters[197]. - The company is committed to maintaining high levels of corporate governance and protecting shareholder rights, fully complying with the corporate governance code during the reporting period[196]. - The supervisory board has verified the financial statements for the year ending December 31, 2024, and believes they fairly reflect the group's financial position and operating performance[190]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence[147]. - The company has a strong focus on strategic advice from its board members, including Jiang Haiying and Cai Rongjun, who have over 30 years of combined experience in business management[95][96]. Shareholder and Capital Structure - The proposed final dividend for the year ending December 31, 2024, is RMB 0.05 per share, subject to shareholder approval at the annual general meeting on June 12, 2025[133]. - As of December 31, 2024, the company has a total of 680,000,000 shares issued, including 180,000,000 H shares and 500,000,000 domestic shares[156]. - The major shareholder, Fujian Qipiwolf Group, owns 203,932,000 domestic shares, accounting for 40.79% of the relevant class of shares and 29.99% of the total issued share capital[157]. - The company has not engaged in any buybacks, sales, or redemptions of its listed securities during the year ending December 31, 2024[142]. Employee and Operational Insights - The company actively engages in team building and professional development to improve employee skills and knowledge[9]. - The number of employees as of December 31, 2024, was 51, all based in China, with compensation aligned with local laws and regulations[84]. - Total operating and management expenses decreased from RMB 24.0 million in 2023 to RMB 23.0 million in 2024, mainly due to reduced employee costs[41]. Acquisitions and Investments - The company completed the acquisition of a 23.0% equity stake in Jinjiang Huixin for a total consideration of RMB 82.96 million, which will continue to be consolidated in the financial statements[80]. - The company completed the acquisition of 24% equity in Huizhi Xin for approximately RMB 185 million, enhancing control over its assets and business strategies[176]. - The company also acquired 23.04% equity in Jinjiang Huixin for approximately RMB 829.6 million, which is expected to strengthen its competitive advantage in the financial market[179].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported net interest income of RMB 112,301,709, a decrease of 19.4% from RMB 139,378,944 in 2023[4] - The company achieved a net profit of RMB 96,333,097, representing a 26.4% increase compared to RMB 76,189,735 in the previous year[4] - The basic and diluted earnings per share for the year were both RMB 0.13, an increase from RMB 0.10 in the previous year[4] - The pre-tax profit for 2024 was RMB 126,126,263, up from RMB 99,569,043 in 2023, reflecting a growth of 26.6%[7] - Interest income for 2024 was $112,739,941, a decrease of 19.6% from $140,179,323 in 2023[99] - Net interest income for 2024 was $112,301,709, down from $139,378,944 in 2023, reflecting a decline of 19.5%[99] - Total impairment losses for loans and receivables in 2024 amounted to $13,145,705, a significant decrease of 49.9% from $26,197,544 in 2023[100] - Total revenue from government grants in 2024 was $3,641,074, up from $3,027,697 in 2023, representing an increase of 20.2%[102] - Current income tax expense for 2024 was $17,585,612, a decrease of 40.3% from $29,663,792 in 2023[106] Assets and Liabilities - The total assets of the company as of December 31, 2024, amounted to RMB 1,239,109,489, down from RMB 1,302,877,545 in 2023, indicating a decrease of 4.9%[5] - The company’s total liabilities decreased to RMB 17,929,706 from RMB 34,356,033, a reduction of 47.8%[5] - The company’s cash and cash equivalents decreased to RMB 103,000,233 from RMB 111,484,915, reflecting a decline of 7.1%[5] - The total cash and cash equivalents at the end of 2024 were RMB 103,000,233, down from RMB 111,484,915 at the end of 2023, a decrease of 7.6%[8] - The total amount of loans issued decreased to RMB 729,008,189 in 2024 from RMB 928,988,756 in 2023, a reduction of 21.5%[113] - The net value of loans receivable after impairment provisions was RMB 670,185,381 in 2024, down from RMB 861,548,743 in 2023, indicating a decrease of 22.2%[113] - The total liabilities at amortized cost decreased to RMB 6,257,087 in 2024 from RMB 15,794,439 in 2023, highlighting a reduction in financial obligations[152] - The total deferred tax assets as of December 31, 2024, amounted to RMB 24,990,778, a decrease from RMB 33,047,862 as of December 31, 2023, reflecting a reduction of approximately 24.5%[130] - The net deferred tax liabilities as of December 31, 2024, were RMB (4,607,807), compared to RMB (457,337) as of December 31, 2023, indicating a significant increase in liabilities[131] Investments and Acquisitions - The company acquired an additional 24% stake in Huizhi Xin for RMB 185,500,000, increasing its ownership to 99%[13] - In June 2024, the company completed the acquisition of a 23% stake in Jinjiang Huixin for RMB 829,600,000, raising its ownership to 99.8%[13] - The company acquired all shares of Sichuan Xianpai in April 2024, resulting in the addition of property and machinery valued at $769,703[117] - Investments in subsidiaries increased significantly to $423,278,345 in 2024 from $340,888,345 in 2023, reflecting a growth of approximately 24.1%[200] Goodwill and Impairment - The company’s goodwill impairment loss was RMB 9,149,858, which was not present in the previous year[4] - The company reported a goodwill impairment of RMB 9,149,858 in 2024, indicating potential challenges in asset valuation[7] - Goodwill is initially measured at cost, which includes the transferred consideration and any fair value of previously held equity interests, exceeding the fair value of identifiable net assets acquired[31] - Impairment losses related to goodwill cannot be reversed in subsequent periods[32] Cash Flow and Financing - The company's operating cash flow for 2024 reached RMB 200,199,788, a significant increase of 195.5% compared to RMB 67,607,784 in 2023[7] - The net cash flow from investing activities was RMB (53,703,987) in 2024, compared to RMB (9,355,462) in 2023, indicating a substantial increase in cash outflow[8] - The company reported a net cash flow from financing activities of RMB (154,923,099) in 2024, which is a significant increase from RMB (77,845,293) in 2023[8] - The company has paid a deposit of RMB 10 million to the bankruptcy administrator of Sichuan Haoji Food Group for participation in the restructuring process, which was initiated in October 2024[134] Financial Reporting Standards - The consolidated financial statements are prepared based on Hong Kong Financial Reporting Standards and presented in Renminbi[14] - The group has adopted revised Hong Kong Financial Reporting Standards for the first time this year, with no impact on the financial position or performance[18] - The group will apply new and revised Hong Kong Financial Reporting Standards once they become effective, with further details provided[20] - The group assesses control over subsidiaries based on voting rights and other contractual arrangements[17] Credit Risk and Management - The company maintained a strict control over outstanding loans to mitigate credit risk, with 92.9% of loans being secured loans as of December 31, 2024[114] - The company evaluates credit impairment based on both quantitative and qualitative factors, including significant adverse changes in the debtor's financial situation[162] - The expected credit loss calculation involves parameters such as default probability, loss given default, and exposure at default[164] - The company monitors the credit quality of loans closely and utilizes measures such as the sale of impaired loans to mitigate overall credit risk[172] Dividends - The company proposed a dividend payment of RMB 34,000,000 to shareholders, consistent with the previous year[6] - The company plans to propose a final dividend of approximately RMB 34.0 million, subject to shareholder approval at the upcoming annual general meeting[107] Miscellaneous - The company did not appoint a CEO during the year, which may impact future strategic decisions[103] - The company has no significant contingent liabilities or major contractual commitments as of December 31, 2024, suggesting a stable risk profile[150][151] - The company did not report any significant events after the reporting period, indicating stability in operations[199]

Regulatory Environment and Business Model - The company operates in a favorable regulatory environment, with the Chinese government promoting financial services and support for private enterprises since 2014[10]. - The company has been encouraged to innovate its business model, particularly in micro-lending to small and medium-sized enterprises and agricultural sectors[10]. - The company is positioned to benefit from the increasing availability of financing resources for private enterprises in Quanzhou[10]. - The company has received support from local government initiatives aimed at promoting the sustainable development of micro-lending companies[10]. - The company’s financial performance is expected to improve as it capitalizes on government policies aimed at enhancing financial services for small businesses[10]. Financial Performance - The total amount of loans issued to customers reached RMB 500.5 million for the six months ended June 30, 2024[11]. - Interest income from loans amounted to RMB 59.0 million for the six months ended June 30, 2024[11]. - The loan principal balance decreased from RMB 925.9 million as of December 31, 2023, to RMB 835.5 million as of June 30, 2024, primarily due to a slowdown in local economic growth[13]. - The loan-to-equity ratio improved from 0.73 times as of December 31, 2023, to 0.67 times as of June 30, 2024[11]. - The overdue loan principal increased from RMB 108.3 million as of December 31, 2023, to RMB 126.1 million as of June 30, 2024, representing 11.7% and 15.1% of total loan principal balances, respectively[17]. - The company’s largest customer and top five customers had outstanding loan balances of RMB 45.8 million and RMB 144.2 million, accounting for 5.5% and 17.3% of total loan principal balances as of June 30, 2024[16]. - The loan portfolio included guaranteed loans of RMB 164.0 million, representing 19.6% of the total loan principal balance as of June 30, 2024[15]. - The company’s capital equity remained stable at RMB 680.0 million as of June 30, 2024[11]. - The company’s overdue loans are primarily secured, reducing the likelihood of loss[17]. - The company’s loan classification system follows the "Five-Level Classification Principle" to manage loan portfolio risks[17]. - The company's non-performing loan ratio increased from 7.9% as of December 31, 2023, to 8.6% as of June 30, 2024, attributed to a decrease in total loans[18]. - The total outstanding loans decreased from RMB 928.99 million as of December 31, 2023, to RMB 836.63 million as of June 30, 2024[18]. - Interest income decreased by 13.8% from RMB 68.39 million for the six months ended June 30, 2023, to RMB 58.96 million for the six months ended June 30, 2024[23]. - The average balance of outstanding non-performing loans decreased by 19.7% from RMB 757.72 million for the six months ended June 30, 2023, to RMB 608.74 million for the six months ended June 30, 2024[23]. - The provision coverage ratio increased from 92.8% as of December 31, 2023, to 100.7% as of June 30, 2024[18]. - The loan loss provision increased from RMB 67.48 million as of December 31, 2023, to RMB 72.33 million as of June 30, 2024[18]. - The average effective annual interest rate on outstanding non-performing loans decreased from 15.77% to 13.82% during the same period[22]. - The company recovered RMB 4.0 million from previously written-off loans during the reporting period[18]. - The net interest income for the six months ended June 30, 2024, was RMB 58.68 million, compared to RMB 68.11 million for the same period in 2023[21]. - Average loan balance decreased from RMB 10.6 million as of June 30, 2023, to RMB 8.8 million as of June 30, 2024, due to a contraction in loan scale[24]. - Net impairment provision for loans and receivables increased from RMB 13.8 million for the six months ended June 30, 2023, to RMB 17.7 million for the six months ended June 30, 2024, primarily due to rising market credit risks[25]. - Total operating and management expenses rose from RMB 10.2 million for the six months ended June 30, 2023, to RMB 10.8 million for the six months ended June 30, 2024, mainly driven by increases in employee costs and service fees[27]. - Net investment income increased from RMB 7.8 million for the six months ended June 30, 2023, to RMB 12.4 million for the six months ended June 30, 2024, due to unrealized gains on financial assets and dividends from listed securities[28]. - Other net income and gains rose from RMB 4.2 million for the six months ended June 30, 2023, to RMB 4.5 million for the six months ended June 30, 2024, mainly due to increased government subsidies[29]. - Income tax expense decreased from RMB 13.5 million for the six months ended June 30, 2023, to RMB 10.1 million for the six months ended June 30, 2024, primarily due to a reduction in pre-tax profits[31]. - Net profit for the six months ended June 30, 2023, was RMB 42.8 million, compared to RMB 36.6 million for the six months ended June 30, 2024[32]. - Cash flow from operating activities generated RMB 118.7 million for the six months ended June 30, 2024, compared to a cash outflow of RMB 12.7 million for the same period in 2023[34]. - Cash flow used in investing activities amounted to RMB 53.2 million for the six months ended June 30, 2024, primarily related to restructuring investment agreements[36]. - The company's cash and cash equivalents increased from RMB 111.5 million at the beginning of the period to RMB 148.5 million at the end of the period[34]. - As of June 30, 2024, the net cash flow used in financing activities was RMB 28.5 million, including interest repayment of RMB 1.2 million and dividend payments of RMB 8.2 million[37]. - Total cash and cash equivalents increased from RMB 111.5 million as of December 31, 2023, to RMB 148.5 million as of June 30, 2024, primarily due to a reduction in loan balances[38][39]. - The net amount of loans and receivables decreased from RMB 861.5 million as of December 31, 2023, to RMB 764.3 million as of June 30, 2024, attributed to a slowdown in national economic growth and reduced corporate funding needs[41]. - As of June 30, 2024, overdue loans amounted to RMB 126.1 million, representing 15.1% of total loans, an increase from 11.7% as of December 31, 2023[42]. Shareholder Structure and Corporate Governance - The company’s largest customer and top five customers had outstanding loan balances of RMB 45.8 million and RMB 144.2 million, accounting for 5.5% and 17.3% of total loan principal balances as of June 30, 2024[16]. - The major shareholder, Fujian Qipilong Group, holds approximately 40.79% of the issued domestic shares[60]. - The total issued share capital is 680,000,000 shares, including 180,000,000 H shares and 500,000,000 domestic shares[61]. - Xiamen Shunyingtong holds 67,932,000 domestic shares, representing 13.59% of the relevant class of share capital[62]. - Quanzhou Yuanpeng holds 57,248,000 domestic shares, representing 11.45% of the relevant class of share capital[62]. - Quanzhou Haoxiang holds 50,000,000 domestic shares, representing 10.00% of the relevant class of share capital[62]. - The company maintains high levels of corporate governance and has fully complied with the corporate governance code during the reporting period[68]. - The company is committed to protecting shareholder rights and has adopted the corporate governance code as per the listing rules[68]. - The board and management have reviewed their corporate governance practices regularly[68]. - The company has a significant shareholder structure, with Good Rising Investments Limited holding approximately 16.36% of the issued H shares[67]. - Major shareholders include Mr. Zhuang Mingting with 12.03% and Mr. Xu Yingyi with 6.39% of the issued H shares[67]. - The company has not disclosed any other individuals or entities with significant shareholdings as of June 30, 2024[67]. Acquisitions and Investments - The company completed the acquisition of a 23.0% equity stake in Jinjiang Huixin for approximately RMB 83.0 million, increasing its ownership to about 99.8%[53]. - The company acquired an additional 24% stake in Huizhi Credit for RMB 18,547,149, increasing its ownership to 99%[85]. - The company completed the acquisition of 100% equity in Sichuan Xianpai after paying RMB 650 million, with the registration completed in April 2024[85]. - The registered capital of Quanzhou Huixin Investment Co., Ltd. is RMB 50 million, with the company holding 100% ownership[84]. - The registered capital of Quanzhou Huizhi Credit Investment Co., Ltd. is USD 10 million, with the company holding 99% ownership[84]. - The registered capital of Sichuan Xianpai Lingzhi Group Co., Ltd. is RMB 40 million, with the company holding 100% ownership[84]. - The company’s subsidiary, Fujian Huichangfu Real Estate Brokerage Co., Ltd., was dissolved on June 12, 2024[85]. Financial Position and Assets - The total assets as of June 30, 2024, amounted to RMB 1,295,713,819, a slight decrease from RMB 1,302,877,545 as of December 31, 2023[80]. - The company reported a decrease in loans and receivables to RMB 764,302,556 from RMB 861,548,743, a decline of 11.3%[80]. - The total liabilities increased to RMB 51,286,288 from RMB 34,356,033, marking a rise of 49.3%[80]. - The total cash and cash equivalents at the end of the period were RMB 148,495,199, compared to RMB 81,471,488 at the end of the previous year[82]. - The company’s total assets as of June 30, 2024, included significant investments in loans and receivables, reflecting its focus on providing financial services to SMEs[83]. - The company experienced a decrease in the fair value of financial instruments, with an unrealized loss of RMB 13,692,145 for the period[82]. - The company’s capital reserve decreased slightly to RMB 75,233,734 as of June 30, 2024, from RMB 75,390,551 at the beginning of the year[81]. - The company’s long-term prepaid expenses decreased to RMB 165,518,000 as of June 30, 2024, from RMB 192,189,000 as of December 31, 2023, reflecting a decrease of 13.9%[122]. - The total amount of other receivables increased to RMB 3,779,027,000 as of June 30, 2024, compared to RMB 1,609,249,000 at the end of 2023, indicating a growth of 134.0%[122]. - The company’s interest-bearing borrowings due within one year decreased to RMB 8,860,960,000 as of June 30, 2024, from RMB 9,894,844,000 as of December 31, 2023, a decrease of 10.4%[123]. - The total amount of other payables increased significantly to RMB 39,654,820,000 as of June 30, 2024, compared to RMB 10,327,378,000 at the end of 2023, representing an increase of 284.5%[124]. - The company reported a total goodwill of RMB 14,729,281,000 as of June 30, 2024, unchanged from the previous year, indicating stability in goodwill valuation[118]. Risk Management and Compliance - The company has not established any variable lease payments that are not dependent on indices or rates, thus the revised accounting standards have no impact on its financial position[90]. - The company has reassessed its liability terms and conditions, concluding that the classification of liabilities remains unchanged under the revised standards[90]. - The company does not have any supplier financing arrangements, so the related revisions have no impact on the interim financial data[90]. - The company’s management regularly reviews overdue balances to manage credit risk effectively[109]. - The company’s financial strategy includes a focus on risk management and investment performance evaluation based on fair value standards[107]. - The group has no significant contingent liabilities or pending lawsuits that could adversely affect its business or financial condition as of June 30, 2024[134]. Future Outlook - The global economic downturn risks remain, but the international macroeconomic environment for China is expected to improve in 2024[58]. - The group aims to diversify its development and explore various business models to broaden revenue sources and enhance shareholder returns in 2024[58]. - The company plans to enhance its market expansion strategies and focus on new product development to improve future performance[79].

Financial Performance - Net interest income for the six months ended June 30, 2024, was RMB 58,679,128, a decrease of 14.5% compared to RMB 68,104,293 for the same period in 2023[2] - Profit before tax for the reporting period was RMB 46,719,170, down 16.9% from RMB 56,244,719 in the same period last year[2] - The net profit for the six months ended June 30, 2024, was RMB 36,630,845, a decrease of 14.4% compared to RMB 42,793,142 for the same period in 2023[2] - The total income tax expense for the six months ended June 30, 2024, was RMB 10,088,325, down from RMB 13,451,577 in 2023, indicating a reduction of about 25.5%[21] - The company reported a significant amount of loans and receivables totaling 764,302,556, with 451,097,387 due in over 12 months[53] - Net profit decreased from RMB 42.8 million to RMB 36.6 million for the six months ended June 30, 2023, and 2024, respectively[86] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,295,713,819, a slight decrease from RMB 1,302,877,545 as of December 31, 2023[3] - Total liabilities as of June 30, 2024, were RMB 51,286,288, an increase from RMB 34,356,033 at the end of 2023[3] - The company’s total equity decreased to RMB 1,244,427,531 from RMB 1,268,521,512 as of December 31, 2023[3] - The company’s total equity attributable to shareholders was RMB 1,241,154,319 as of June 30, 2024, reflecting a stable capital structure[5] - As of June 30, 2024, the total liabilities payable amounted to RMB 39,654,820, a significant increase from RMB 10,327,378 as of December 31, 2023[43] Cash Flow - The net cash flow generated from operating activities for the six months ended June 30, 2024, was RMB 138,763,284, significantly up from RMB 7,852,684 in the previous year[6] - Cash and cash equivalents increased to RMB 148,495,199 from RMB 111,484,915 at the end of 2023, representing a growth of 33.2%[3] - The cash outflow from financing activities for the six months ended June 30, 2024, was RMB 582,488, compared to RMB 674,476 for the same period in 2023[47] - The net cash flow used in investing activities for the six months ended June 30, 2024, was RMB 53.2 million, primarily for restructuring investment agreements[90] Loan Portfolio - Loans issued amounted to RMB 836,634,019 as of June 30, 2024, compared to RMB 928,988,756 as of December 31, 2023, showing a decrease of about 9.9%[27] - The loan portfolio consists of 66.9% revolving loans and 33.1% term loans as of June 30, 2024, compared to 67.9% and 32.1% respectively as of December 31, 2023[67] - As of June 30, 2024, overdue loans amounted to RMB 126.1 million, representing 15.1% of the total loan principal balance[69] - The company had 21 overdue loans as of June 30, 2024, with a total principal amount of RMB 126.1 million and an impairment loss provision of RMB 32.9 million[70] Impairment and Credit Risk - The net loss from impairment of loans and receivables was RMB 17,734,199, an increase of 28.5% from RMB 13,819,763 in the prior year[2] - The impairment provision for loans was RMB 63,944,385 as of June 30, 2024, compared to RMB 57,021,438 at the end of 2023, reflecting an increase of about 12.9%[27] - The provision coverage ratio increased to 100.7% as of June 30, 2024, compared to 92.8% as of December 31, 2023[72] - The ratio of non-performing loans rose from 7.9% as of December 31, 2023, to 8.6% as of June 30, 2024, attributed to a decrease in total loans[74] Corporate Governance and Compliance - The company is committed to maintaining high levels of corporate governance and has fully complied with the corporate governance code during the reporting period[105] - The audit committee has reviewed the accounting principles and practices adopted by the company, with no disagreements noted by the auditors[110] - The company complied with all major regulatory capital requirements and borrowing limits as of June 30, 2024[75] Strategic Focus - The company provided loans and financial services primarily to small and micro enterprises, indicating a focus on supporting the SME sector[8] - The company plans to continue expanding its loan offerings and investment consulting services to enhance its market position[8] - The company continues to focus on providing flexible short-term financing solutions to local entrepreneurs, SMEs, and micro-enterprises[65] Investments and Acquisitions - The company increased its ownership in Sichuan Xianpai Group Co., Ltd. to 100% after acquiring an additional 24% stake for RMB 18,547,149 in January 2024[10] - The company completed the acquisition of 23.0% equity in Jinjiang Huixin for approximately RMB 83.0 million, increasing its ownership to about 99.8%[99] Employee and Operational Information - The company has 54 employees, all based in China, with compensation aligned with local laws and regulations[102] - The salary and other short-term employee benefits for key management personnel for the six months ended June 30, 2024, were RMB 980,057, compared to RMB 958,062 for the same period in 2023[48]

Financial Performance - As of December 31, 2023, the company's net interest income was RMB 139.4 million, and net profit was RMB 76.2 million, with a loan balance reaching RMB 925.9 million[10]. - The total amount of loans granted to customers was RMB 1,098.1 million, generating interest income of RMB 140.2 million during the reporting period[16]. - The company aims to continue diversified development in 2024 to provide returns to shareholders and society[12]. - Interest income for 2023 was RMB 140.2 million, slightly up from RMB 138.5 million in 2022, while net interest income increased to RMB 139.4 million from RMB 135.6 million[42]. - Net profit increased from RMB 72.4 million in 2022 to RMB 76.2 million in 2023[60]. - Total other income and gains rose from RMB 4.9 million in 2022 to RMB 6.3 million in 2023[57]. Loan Portfolio and Risk Management - The loan principal balance increased from RMB 851.7 million in 2022 to RMB 925.9 million in 2023, representing an increase of approximately 8.7%[18]. - The non-performing loan ratio decreased from 9.8% in 2022 to 7.9% in 2023, with non-performing loan balance reducing from RMB 83.6 million to RMB 72.7 million[34]. - The provision coverage ratio improved to 92.8% in 2023 from 70.0% in 2022, indicating a stronger buffer against potential loan losses[34]. - The company has maintained a focus on collateralized lending, particularly with quality residential properties and other assets[11]. - The company classified loans into five categories, with "normal" loans decreasing from 59.7% in 2022 to 51.7% in 2023, while "watch" loans increased from 30.5% to 40.4%[31]. - The loan loss provision for 2023 was RMB 67.5 million, compared to RMB 58.5 million in 2022, reflecting an increase in expected credit losses[34]. Operational Strategy and Business Development - The company has adopted a cautious operational strategy focusing on risk control while exploring new business opportunities, including distressed asset management[11]. - The company participated in the bankruptcy restructuring investment of a Sichuan enterprise to diversify income sources and optimize business structure[11]. - The company is actively researching and developing new business areas while continuing its traditional lending operations[11]. - The company primarily focuses on providing practical and flexible short-term financing solutions to local entrepreneurs, small and micro enterprises to support their ongoing development and address emerging liquidity needs[138]. Economic Environment and Challenges - The macroeconomic environment in 2023 was challenging, with geopolitical tensions and domestic policy impacts leading to decreased demand and employment pressure[10]. - The company faces regulatory risks due to the evolving laws and regulations governing the micro-lending industry, which may require substantial operational changes[146]. - The sustainability and future growth of the company depend on effectively managing credit risk and maintaining a low ratio of impaired loans[147]. - The company's existing operations are primarily located in Quanzhou, and any significant deterioration in the economic or business environment in Quanzhou could adversely affect its financial condition and operating performance[148]. Shareholder and Corporate Governance - The proposed final dividend is RMB 0.05 per share for the year ended December 31, 2023, subject to shareholder approval at the annual general meeting on June 7, 2024[159]. - The company has confirmed that all independent non-executive directors understand their responsibilities as directors of a listed issuer[175]. - Major shareholders confirmed compliance with non-competition commitments for the year ending December 31, 2023[200]. - The non-competition agreement restricts major shareholders and their affiliates from engaging in direct or indirect competition with the company's main business[200]. Employee and Management Information - The group has 51 employees as of December 31, 2023, all based in Fujian Province, with compensation aligned with Chinese laws and regulations[100]. - The company emphasizes the importance of employee development through a learning organization culture and encourages participation in professional qualifications and personal learning[11]. - The remuneration for directors and senior management is determined based on performance, operational results, and market statistics[179]. Financial Position and Assets - As of December 31, 2023, the company's equity was RMB 680 million, with a net capital of RMB 1,268.5 million, an increase from RMB 1,239.3 million in 2022[18]. - The total assets as of December 31, 2023, were RMB 1,302.9 million, a slight decrease from RMB 1,326.0 million as of December 31, 2022[68]. - The total liabilities decreased significantly from RMB 86.6 million as of December 31, 2022, to RMB 34.4 million as of December 31, 2023[68]. - The company has maintained goodwill at RMB 14.7 million as of December 31, 2023, consistent with the previous year[77].

Financial Performance - For the year ended December 31, 2023, the company reported net interest income of RMB 139,378,944, an increase of 2.1% from RMB 135,597,605 in 2022[5]. - The net profit for the year was RMB 76,189,735, representing a growth of 5.2% from RMB 72,429,360 in 2022[5]. - Basic and diluted earnings per share increased to RMB 0.10 from RMB 0.09, marking a 11.1% increase year-over-year[5]. - The company reported a pre-tax profit of RMB 99,569,043 for 2023, compared to RMB 95,627,871 in 2022, showing a growth of 2.0%[9]. - The company reported a profit attributable to ordinary shareholders of RMB 64,814,928 for 2023, an increase from RMB 60,700,176 in 2022, resulting in basic earnings per share of RMB 0.10[119]. Asset and Liability Management - Total assets as of December 31, 2023, amounted to RMB 1,302,877,545, a decrease of 1.7% from RMB 1,325,953,714 in 2022[6]. - The company's cash and cash equivalents decreased to RMB 111,484,915 from RMB 143,268,846, a decline of 22.1%[6]. - Total liabilities significantly reduced to RMB 34,356,033 from RMB 86,635,537, a decrease of 60.3%[6]. - The company's total equity increased to RMB 1,268,521,512 from RMB 1,239,318,177, reflecting a growth of 2.4%[6]. - The total loans issued by the company increased to RMB 928,988,756 as of December 31, 2023, up from RMB 857,724,076 in 2022, representing an increase of approximately 8.8%[124]. Impairment and Credit Risk - The company experienced a significant increase in impairment losses on loans and receivables, totaling RMB 26,197,544, compared to RMB 7,848,513 in the previous year, reflecting a rise of 234.5%[5]. - The total impairment loss for loans and receivables was RMB 26,197,544 in 2023, compared to RMB 7,848,513 in 2022, indicating a significant rise in credit risk provisions[108]. - The company's total expected credit loss provisions rose to RMB 67,676,412 as of December 31, 2023, compared to RMB 58,722,398 in 2022, indicating an increase of approximately 15.5%[129]. - The group categorizes loans into five risk categories: Normal, Watch, Substandard, Doubtful, and Loss, to manage credit risk effectively[179]. - The maximum credit risk exposure, excluding any collateral or credit enhancements, was reported at 987,552,530 as of December 31, 2023, compared to 945,778,581 in 2022[200]. Cash Flow and Financing Activities - Operating cash flow for 2023 was RMB 67,607,784, a decrease of 68.7% from RMB 215,189,021 in 2022[9]. - The net cash flow from investing activities in 2023 was RMB (9,355,462), compared to RMB (1,583,158) in 2022, indicating a significant increase in cash outflow[11]. - The net cash flow from financing activities decreased to RMB (77,845,293) in 2023 from RMB (111,489,197) in 2022, reflecting a reduction in financing activities[11]. - The company reported a net cash inflow of RMB 260.715 million from the sale of subsidiaries, with cash consideration received amounting to RMB 261.387 million[159]. Dividend and Shareholder Information - The company declared dividends totaling RMB 34,000,000 for the year, consistent with the previous year[7]. - The company declared a cash dividend of RMB 34.0 million for the year ended December 31, 2022, and proposed a final dividend of approximately RMB 34.0 million for 2023[116]. - As of December 31, 2023, the company has issued and fully paid 680 million ordinary shares with a par value of RMB 1 each, unchanged from 2022[153]. Compliance and Reporting Standards - The group has adopted new and revised Hong Kong Financial Reporting Standards for the current financial year, with no significant impact on the financial statements[25]. - The group has not yet adopted new standards that are issued but not yet effective, planning to apply them when they become applicable[26]. - The amendments to Hong Kong Financial Reporting Standard 16, effective from January 1, 2024, are not expected to have a significant impact on the group's financial statements[28]. Operational Insights - The company plans to continue focusing on loan issuance and improving asset quality in the upcoming year[3]. - The group’s primary revenue source remains from small loan operations, with most income generated from external customers located in Quanzhou, Fujian Province, China[101]. - The company maintained a strict control over outstanding loans to reduce credit risk, with regular reviews of overdue balances conducted by management[124]. Employee and Remuneration Information - Total remuneration for directors and supervisors amounted to RMB 3,370,563, with executive directors receiving RMB 2,745,750 in salaries and allowances[110]. - The number of highest-paid non-director and non-supervisor employees remained at 2 for both 2023 and 2022, with total remuneration of RMB 965,988 in 2023[113]. Miscellaneous Financial Information - The company recognized a government grant of RMB 3,027,697 in 2023, compared to RMB 2,953,695 in 2022, reflecting a modest increase[108]. - The income tax expense for 2023 was RMB 23,379,308, slightly higher than RMB 23,198,511 in 2022[115]. - The company incurred lease cash outflows of RMB 1.208 million in financing activities for 2023, compared to RMB 879.415 million in 2022[163].

Financial Performance - Net profit for the period was RMB 42,793,142, an increase of 67.5% compared to RMB 25,550,709 in the same period last year[54]. - Basic and diluted earnings per share attributable to ordinary shareholders of the parent company increased to RMB 0.05 from RMB 0.03[54]. - The pre-tax profit from operating activities for the six months ended June 30, 2023, was RMB 56,244,719, compared to RMB 34,347,784 for the same period last year, representing a year-over-year increase of 63.9%[31]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2023, was RMB 34,826,363, compared to RMB 22,653,848 for the same period in 2022, representing a year-over-year increase of approximately 54%[169]. - The income tax expense for the six months ended June 30, 2023, was RMB 13,451,577, compared to RMB 8,797,075 in the same period of 2022, indicating a higher tax burden due to increased profits[164]. - The company reported a total income from profit or loss of RMB 7,759,412 for the first half of 2023, compared to a loss of RMB 1,927,860 in the same period of 2022[189]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 1,320,014,171, a slight decrease from RMB 1,325,953,714 at the end of 2022[56]. - Total liabilities decreased to RMB 78,859,852 from RMB 86,635,537 at the end of 2022[56]. - The total liabilities as of June 30, 2023, were RMB 1,241,154,319, reflecting an increase from the previous period[177]. - The total value of loans receivable was RMB 955,943,524, an increase from RMB 858,116,038 as of December 31, 2022, representing an increase of approximately 11.4%[83]. - The total outstanding borrowings as of June 30, 2023, included guaranteed bank loans of RMB 30 million and guaranteed loans of RMB 9.65 million, down from RMB 38.92 million as of December 31, 2022[79]. - The company’s total equity as of June 30, 2023, was RMB 1,241.2 million, slightly up from RMB 1,239.3 million as of December 31, 2022[171]. Cash Flow - The net cash flow generated from operating activities was a negative RMB 12,720,936, a decrease from a positive RMB 50,411,217 in the previous year[31]. - The total cash and cash equivalents at the end of the period were RMB 81,471,488, down from RMB 131,077,717 at the beginning of the period, indicating a decrease of 37.9%[31]. - The company reported a net cash outflow from financing activities of RMB 37,110,248, compared to RMB 48,296,639 in the previous year, showing an improvement of 23.5%[31]. - The company’s total cash and bank balances from the sale of subsidiaries amounted to RMB 602 as of June 30, 2023[125]. - The company’s bank deposits as of June 30, 2023, were RMB 79,593,908, significantly lower than RMB 142,981,366 reported at the end of 2022, reflecting a decrease of approximately 44.5%[139]. Loans and Credit Risk - The total amount of loans issued reached RMB 955,654 thousand as of June 30, 2023, up from RMB 857,724 thousand at the end of 2022, indicating a growth in lending activity[199]. - The loan-to-equity ratio increased to 0.76 times as of June 30, 2023, compared to 0.69 times as of December 31, 2022, indicating a higher leverage position[171]. - The ratio of non-performing loans decreased to 8.9% as of June 30, 2023, down from 9.8% as of December 31, 2022[199]. - The net provision for loan impairment losses was RMB 13,883 thousand for the six months ended June 30, 2023, compared to RMB 8,163 thousand for the same period in 2022, reflecting a rise in expected credit losses[199]. - The company continues to focus on providing loans and financial services to small and micro enterprises, indicating a strategic commitment to this market segment[64]. Shareholder Information - The total number of issued shares as of June 30, 2023, is 680,000,000, including 180,000,000 H shares and 500,000,000 domestic shares[30]. - The company has declared dividends payable of RMB 34,000,000 as of June 30, 2023, which was not present in the previous period[118]. - The company approved a dividend of RMB 0.05 per ordinary share, totaling RMB 34 million, for the year ended December 31, 2022, which was distributed on August 15, 2023[166]. - The ownership structure indicates that major shareholders have significant control over the company, with several entities holding over 10%[25]. - The company has not issued any potential dilutive ordinary shares during the reporting period, hence no adjustments were made for diluted earnings per share[168]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has fully complied with it during the reporting period[39]. - The audit committee has reviewed the accounting principles and practices adopted by the group, with no disagreements noted by the auditors[45]. - The company maintains a high level of corporate governance to protect shareholder interests[39]. - The report highlights the importance of compliance with disclosure requirements under the Securities and Futures Ordinance[5]. Market Position and Strategy - The company aims to enhance its competitive strength and explore new development opportunities in the post-pandemic economic recovery[15]. - The company is the largest licensed micro-lending company in Fujian Province based on revenue for the year 2022, focusing on providing flexible short-term financing solutions to local entrepreneurs and SMEs[138]. - The company plans to continue expanding its market presence and investing in new technologies[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告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告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。 Quanzhou Huixin Micro-credit Co., Ltd.* 泉 州 匯 鑫 小 額 貸 款 股 份 有 限 公 司 （於中華人民共和國成立的有限公司） （股份代號：1577） 截至2023年6月30日止六個月的 中期業績公告 泉州匯鑫小額貸款股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈，本公司 及其附屬公司（「本集團」、「我們」或「我們的」）截至2023年6月30日止六個月（「報告期間」） 根據香港會計師公會頒佈的香港財務報告準則（「香港財務報告準則」）編製的未經審核中期 業績（「中期業績」），連同2022年同期之比較數字。董事會及本公司審計委員會（「審計委員 會」）已審閱並確認中期業績。除文義另有所指外，本公告所載全部金額均以人民幣（「人民 幣」）為單位。 ...

Loan Performance and Classification - As of December 31, 2022, the total loan principal balance was RMB 851.68 million, with overdue loans amounting to RMB 119.22 million, representing 14.0% of the total[11]. - The company reported that loans due within three months accounted for 23.8% of the total loan principal balance, while loans due within one year accounted for 45.4%[11]. - The company's "substandard" loans decreased from RMB 47.2 million as of December 31, 2021, to RMB 30.7 million as of December 31, 2022, primarily due to reclassification of certain overdue loans[16]. - The "suspected" loans slightly decreased from RMB 52.7 million to RMB 51.6 million, attributed to increased credit risk leading to write-offs of overdue loans totaling RMB 8.9 million[16]. - The overdue loan ratio as of December 31, 2022, was reported at 14.0%, compared to 12.8% the previous year[11][24]. - The company adopted a loan classification method based on risk levels, categorizing loans into "normal," "concern," "substandard," "suspected," or "loss"[16]. - The overdue loan principal amount decreased from RMB 132.8 million as of December 31, 2021, to RMB 119.2 million as of December 31, 2022, representing a reduction of approximately 12.1%[28][29]. - The non-performing loan ratio improved slightly from 9.9% in 2021 to 9.8% in 2022, with non-performing loan balance decreasing from RMB 103.3 million to RMB 83.6 million[33]. - The loan portfolio by risk category showed that normal loans were RMB 508.4 million (59.7%), while loans under special attention were RMB 259.7 million (30.5%) as of December 31, 2022[47]. Financial Performance - Total loans granted to customers amounted to RMB 1,194.0 million for the year ended December 31, 2022, with interest income from loans at RMB 138.5 million[35]. - The loan principal balance decreased from RMB 1,036.6 million in 2021 to RMB 851.7 million in 2022, a decline of approximately 17.8%[37]. - The loan-to-equity ratio improved from 0.86 times in 2021 to 0.69 times in 2022, indicating a stronger capital position[36]. - The provision coverage ratio for non-performing loans increased from 59.3% in 2021 to 70.0% in 2022, reflecting enhanced risk management[33]. - The loan impairment loss provision rate rose from 5.9% in 2021 to 6.8% in 2022, indicating a more conservative approach to credit risk[33]. - The company reported a net profit of RMB 62.0 million for the year ended December 31, 2022, compared to RMB 72.4 million for the year ended December 31, 2021, representing a decrease of approximately 14.4%[128]. - The net interest income for the year ended December 31, 2022, was RMB 135.6 million[56]. - Interest income slightly decreased by 0.9% from RMB 139.8 million for the year ended December 31, 2021, to RMB 138.5 million for the year ended December 31, 2022[100]. - The company's cash and cash equivalents increased significantly from RMB 40.9 million as of December 31, 2021, to RMB 143.3 million as of December 31, 2022, marking an increase of approximately 250%[138]. - The net cash flow from operating activities for the year ended December 31, 2022, was RMB 215.2 million, a substantial increase from RMB 43.5 million in the previous year, indicating a growth of over 394%[131]. Operational Strategy and Market Conditions - The company experienced a reduction in market competitiveness due to government policies that increased the availability of loans to small and micro enterprises, resulting in shorter loan usage periods for clients[10]. - The government has implemented various supportive policies to enhance financial services for private enterprises, positively impacting the company's loan business[10]. - The company is focused on expanding its micro-lending services to support small and medium enterprises, particularly in the Quanzhou region[7]. - The company emphasized a cautious approach to business operations, focusing on prudent lending and risk assessment to maintain stability amid economic uncertainties[57]. - In 2023, the company plans to continue its business development strategy to benefit shareholders and society[58]. Asset and Liability Management - The total liabilities decreased from RMB 161.1 million as of December 31, 2021, to RMB 86.6 million as of December 31, 2022, reflecting a reduction of approximately 46.3%[137]. - The company's total assets decreased from RMB 1,368.7 million as of December 31, 2021, to RMB 1,326.0 million as of December 31, 2022, a decline of approximately 3.1%[137]. - The total impairment loss provision decreased from RMB 61.5 million as of December 31, 2021, to RMB 58.7 million as of December 31, 2022[156]. - The company maintained a significant portion of its loans as guaranteed loans, with 82.0% of loans issued as of December 31, 2022, being secured[158]. - The company has no significant unresolved tax disputes with the Chinese tax authorities as of December 31, 2022[127]. Employee and Operational Expenses - Total operating and management expenses decreased from RMB 25.5 million for the year ended December 31, 2021, to RMB 24.5 million for the year ended December 31, 2022, mainly due to a reduction in employee costs[104]. - Employee costs, including salaries, bonuses, and allowances, decreased from RMB 12.283 million in 2021 to RMB 11.395 million in 2022[104]. - The company employed 51 staff members, all based in Fujian Province, with compensation aligned with local laws and regulations[200]. Legal and Compliance Matters - The supervisory board verified the financial statements for 2022, concluding that they fairly reflect the company's financial condition and operating performance[118]. - The company has initiated 7 new legal proceedings to recover overdue payments as of December 31, 2022, but management believes these will not have a significant adverse impact on its business or financial condition[139].

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告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告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。 Quanzhou Huixin Micro-credit Co., Ltd.* 泉 州 匯 鑫 小 額 貸 款 股 份 有 限 公 司 （於中華人民共和國成立的有限公司） （股份代號：1577） 2022年年度業績公告 及 建議修訂組織章程細則 泉州匯鑫小額貸款股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈，本公司 及其附屬公司（「本集團」、「我們」或「我們的」）截至2022年12月31日止年度（「報告期間」）根 據香港會計師公會（「香港會計師公會」）頒佈的香港財務報告準則（「香港財務報告準則」）編 製的經審計年度業績（「年度業績」）。董事會及本公司審計委員會（「審計委員會」）已審閱並 確認年度業績。除另有指明外，本公告所載所有金額均以人民幣（「人民幣」）呈列。 ...