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。 ...

Financial Performance - The company reported a net profit of RMB 50 million for the first half of 2022, representing a 20% increase compared to the same period last year[11]. - Net profit for the six months ended June 30, 2022, was RMB 25.6 million, down from RMB 43.4 million for the same period in 2021[61]. - The company reported a net profit of RMB 25,550,709 for the six months ended June 30, 2022, down from RMB 43,399,631 in the prior year, representing a decrease of approximately 41.1%[134]. - The pre-tax profit for the six months ended June 30, 2022, was RMB 34,347,784, compared to RMB 57,183,510 for the same period in 2021, representing a decline of about 40.0%[143]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were both RMB 0.03, down from RMB 0.05 in the same period of 2021[134]. Assets and Liabilities - Total assets reached RMB 1.2 billion, an increase of 15% year-on-year[11]. - Total assets as of June 30, 2022, amounted to RMB 1,341,411,271, a slight decrease from RMB 1,368,685,874 as of December 31, 2021[136]. - The total liabilities decreased to RMB 142,316,215 as of June 30, 2022, compared to RMB 161,141,527 at the end of 2021[136]. - The company's debt ratio decreased from 5.6% as of December 31, 2021, to 1.5% as of June 30, 2022[62]. - The total outstanding borrowings decreased from RMB 106.1 million as of December 31, 2021, to RMB 59.5 million as of June 30, 2022, reflecting a reduction in financial leverage[84]. Loan Portfolio - The loan portfolio expanded to RMB 800 million, reflecting a growth of 25% from the previous year[11]. - Total loans granted by the company amounted to RMB 537.0 million for the six months ended June 30, 2022, generating interest income of RMB 68.6 million[18]. - The company's loan principal balance decreased from RMB 1,036.6 million as of December 31, 2021, to RMB 905.8 million as of June 30, 2022, primarily due to local economic slowdown[22]. - The total outstanding loans decreased from RMB 1,043.4 million as of December 31, 2021, to RMB 912.5 million as of June 30, 2022[32]. - The composition of the loan portfolio as of June 30, 2022, included 59.9% classified as normal loans, 30.2% as attention loans, and 5.1% as substandard loans[29]. Revenue and Income - Future guidance indicates a projected revenue growth of 15% for the second half of 2022[11]. - Interest income increased by 2.6% from RMB 66.9 million for the six months ended June 30, 2021, to RMB 68.6 million for the six months ended June 30, 2022[47]. - The company’s total revenue from interest income was RMB 68,640,954 for the six months ended June 30, 2022, compared to RMB 66,894,102 in the same period of 2021, reflecting a growth of approximately 2.6%[134]. - The company’s interest income from loans represented a significant portion of its total revenue, highlighting its reliance on lending activities[18]. Operational Strategy - The company plans to launch a new micro-loan product targeting small businesses in Q3 2022[11]. - The company aims to expand its operations into two additional provinces by the end of 2022[11]. - A new marketing strategy focusing on digital channels is set to be implemented in Q3 2022[11]. - The company is exploring potential mergers and acquisitions to enhance market presence[11]. - Investment in technology upgrades is expected to reach RMB 10 million to improve service efficiency[11]. Risk Management - The company has implemented a loan classification system based on the "five-level classification principle" to manage loan portfolio risks[28]. - The company anticipates a low likelihood of loss from overdue loans due to the presence of collateral or guarantees[28]. - The company's non-performing loan ratio decreased slightly from 9.9% as of December 31, 2021, to 9.8% as of June 30, 2022[32]. - The overdue loan principal decreased from RMB 132.8 million as of December 31, 2021, to RMB 118.7 million as of June 30, 2022, representing 12.8% and 13.1% of total loan principal balances, respectively[27]. - The company continues to adopt a prudent and diversified approach to credit project approvals, effectively managing loan usage and repayment plans to mitigate potential risks[101]. Employee and Governance - As of June 30, 2022, the group had 54 employees, all based in Fujian Province, China, with compensation aligned with local laws and regulations[97]. - The company maintains high levels of corporate governance and has fully complied with the corporate governance code during the reporting period[121]. - The audit committee has reviewed the accounting principles and practices adopted by the company, with no disagreements noted with the auditors[128]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2022, was RMB 50.4 million, down from RMB 94.5 million for the same period in 2021[63]. - Cash flow used in investing activities for the six months ended June 30, 2022, was RMB 0.8 million, primarily for the purchase of intangible assets[67]. - Cash flow used in financing activities for the six months ended June 30, 2022, was RMB 48.3 million, including net repayment of bank borrowings of RMB 46.8 million[68]. - The company reported no significant investments, acquisitions, or disposals during the six months ended June 30, 2022[93]. - The company has no significant future investment or external financing plans as of June 30, 2022[95]. Shareholder Information - As of June 30, 2022, the major shareholder, Fujian Qipilong Group, holds 203,932,000 shares, representing 40.79% of the relevant class of shares and 29.99% of the total issued share capital[108]. - The largest shareholder, Fujian Haoxiang Garden, holds 50,000,000 shares, representing 10.00% of the total share capital[111]. - The company does not recommend any interim dividend for the six months ended June 30, 2022[126]. - The company distributed dividends of RMB 34,000,000 to shareholders during the reporting period, consistent with the previous year[141]. Legal and Compliance - The company is currently involved in a pending lawsuit, which has resulted in the freezing of RMB 12,191,129 in bank deposits[190]. - The company complied with all major regulatory capital requirements and lending restrictions as of June 30, 2022[38]. - The company has not identified any loss-making contracts during the reporting period, indicating stable contract performance[162].

Financial Performance - For the year ended December 31, 2021, the company's net interest income was RMB 137.7 million, and net profit was RMB 62.0 million, with a loan balance reaching RMB 1,036.6 million[8]. - The company reported interest income of RMB 139.1 million in 2021, down from RMB 143.5 million in 2020[41]. - Interest income decreased by 4.4% from RMB 146.2 million in 2020 to RMB 139.8 million in 2021[51]. - The company recorded a net profit of RMB 62.0 million for the year ended December 31, 2021, compared to RMB 53.9 million for the year ended December 31, 2020[73]. - The company's total assets increased from RMB 1,310.3 million in 2020 to RMB 1,368.7 million in 2021[85]. - The company's total liabilities increased from RMB 80.3 million in 2020 to RMB 161.1 million in 2021[85]. - The company’s equity remained stable at RMB 680.0 million from 2020 to 2021, while net capital decreased from RMB 1,230.0 million to RMB 1,207.5 million[16]. - The company’s goodwill remained stable at RMB 14.7 million as of December 31 for both 2020 and 2021[96]. Loan Portfolio and Risk Management - The loan principal balance increased from RMB 869.9 million in 2020 to RMB 1,036.6 million in 2021, reflecting a recovery in the economy post-pandemic[18]. - The overdue loan principal amount rose from RMB 70.7 million in 2020 to RMB 132.8 million in 2021, representing an increase in the overdue loan ratio from 8.1% to 12.8%[31]. - The company adopted a risk classification method for managing its loan portfolio, categorizing loans into five risk levels according to regulatory guidelines[36]. - The company is closely monitoring the operational status of existing clients to identify potential risks[9]. - The company has implemented a series of internal control measures and revised operational procedures to strengthen risk management[9]. - The company aims to maintain a low impairment loan ratio to ensure sustainable business growth and effective credit risk management[171]. - The provision for impairment losses on loans and receivables decreased from RMB 69.1 million in 2020 to RMB 10.9 million in 2021[60]. Business Strategy and Development - The company maintains a cautious development approach, focusing on strict credit approval for new corporate clients and prioritizing mortgage clients[9]. - In 2022, the company aims to continue steady development, enhance team professionalism, and explore new business opportunities to deliver long-term value to shareholders[10]. - The company plans to maintain a prudent development strategy, optimize its organizational structure, and enhance its information systems to better serve customers in 2022[129]. - The company is focused on diversifying its product services and ensuring sustainable business operations by addressing industry customer needs[9]. - The company has set a future outlook with a revenue guidance of 1.5 billion for the next fiscal year, indicating a growth target of 25%[139]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[139]. - A strategic acquisition is in progress, which is expected to enhance the company's service offerings and operational efficiency[139]. Compliance and Regulatory Environment - The company is committed to adapting to regulatory changes and enhancing compliance with financial regulations[8]. - The company complied with all major regulatory capital requirements and borrowing limits as of December 31, 2021[47]. - The company operates in a highly regulated industry and must adapt to evolving laws and regulations, which could significantly impact its financial performance if not managed properly[168]. Employee and Operational Efficiency - The company is actively conducting offline training for key staff to improve professional capabilities in various areas, including market management and legal policies[9]. - Employee costs as a percentage of total business and management expenses increased from 50.8% in 2020 to 57.0% in 2021[63]. - The company emphasizes the importance of employee relations and provides comprehensive benefits and professional training programs to enhance employee value[167]. - The company has achieved a 20% reduction in operational costs through efficiency improvements and process optimizations[139]. Future Outlook and Innovations - New product development initiatives are underway, focusing on innovative financial solutions aimed at enhancing customer experience[139]. - The management team emphasized the importance of risk management policies, which have been strengthened to mitigate potential financial risks[138]. - The company has invested in technology upgrades, allocating 10% of its revenue towards R&D for new financial technologies[139]. Shareholder Information - The company reported a proposed final dividend of RMB 0.05 per share for the year ended December 31, 2021, subject to shareholder approval[181]. - The proposed final dividend payment is subject to approval at the annual general meeting, with H-share transfer registration suspended from June 20, 2022, to June 24, 2022[186].

Financial Performance - The company reported a net profit of RMB 50 million for the first half of 2021, representing a 20% increase compared to the same period last year[13]. - The company recorded a net profit of RMB 43.4 million for the six months ended June 30, 2021, up from RMB 11.4 million for the same period in 2020[64]. - The net profit for the period was RMB 43,399,631, up from RMB 11,367,049 in the previous year, indicating an increase of 282.5%[137]. - The pre-tax profit for the six months ended June 30, 2021, was RMB 57,183,510, significantly higher than RMB 14,982,511 for the same period in 2020, marking an increase of about 281%[147]. - The company reported a significant increase in profit before tax, reaching RMB 57,183,510, compared to RMB 14,982,511 for the same period last year, representing a growth of 281.5%[137]. - The net profit for the six months ended June 30, 2021, was RMB 32,739,134, compared to RMB 6,463,136 for the same period in 2020, indicating a significant increase of approximately 404%[147]. Loan Portfolio and Growth - Total loan portfolio reached RMB 1.2 billion, with a year-on-year growth of 15%[13]. - The total amount of loans issued was RMB 953 million as of June 30, 2021, compared to RMB 876 million as of December 31, 2020, reflecting a growth of approximately 8.8%[78]. - The company's loan principal balance increased from RMB 869.9 million as of December 31, 2020, to RMB 946.5 million as of June 30, 2021, reflecting a recovery in the economy post-pandemic[20]. - The overdue loan principal increased from RMB 70.7 million (8.1% of total loans) as of December 31, 2020, to RMB 123.2 million (13.0% of total loans) as of June 30, 2021, primarily due to temporary cash flow difficulties faced by borrowers[25]. - The total value of loans and receivables as of June 30, 2021, was RMB 957,235,202, compared to RMB 886,495,332 on December 31, 2020, indicating a growth of 8.0%[190]. Risk Management - A focus on risk management has led to a reduction in non-performing loans to 1.5% of the total loan portfolio[13]. - The non-performing loan ratio decreased from 9.9% as of December 31, 2020, to 8.7% as of June 30, 2021, with non-performing loans amounting to RMB 83,295 thousand[29][34]. - The provision coverage ratio increased to 61.4% as of June 30, 2021, compared to 60.3% as of December 31, 2020[29]. - The company has implemented strict controls on outstanding loans to mitigate credit risk, with regular reviews of overdue balances[187]. Revenue and Income - Interest income for the first half of 2021 was RMB 66,456 thousand, down from RMB 143,540 thousand for the full year of 2020[29]. - The interest income from loans and receivables was RMB 66,894,102, down from RMB 69,267,800 in 2020, indicating a decline of approximately 3.4%[162]. - The company’s interest income from loans and finance lease receivables primarily comes from non-performing loans[45]. - The company reported a total impairment loss provision of RMB 51.5 million as of June 30, 2021, slightly down from RMB 52.9 million as of December 31, 2020[76]. Operational Efficiency - The company is investing RMB 5 million in technology upgrades to enhance its loan processing efficiency[13]. - Total operating and management expenses decreased from RMB 126.75 million for the six months ended June 30, 2020, to RMB 119.16 million for the six months ended June 30, 2021, primarily due to reduced depreciation of right-of-use assets and amortization of intangible assets[57]. - Net cash flow from operating activities increased significantly to RMB 94.54 million for the six months ended June 30, 2021, compared to RMB 54.81 million for the same period in 2020[67]. Shareholder Information - As of June 30, 2021, the company had a total issued share capital of 680,000,000 shares, including 180,000,000 H shares and 500,000,000 domestic shares[107]. - The company declared dividends to shareholders amounting to RMB 34,000,000 during the first half of 2021, consistent with the previous year's dividend distribution[147]. - The company has not declared any interim dividends for the six months ending June 30, 2021[128]. Corporate Governance - The audit committee reviewed the accounting principles and internal controls, confirming no disagreements with the auditors[130]. - The board of directors has fully complied with the corporate governance code during the reporting period[122]. - The company has a commitment to maintaining high levels of corporate governance and protecting shareholder rights[122]. Market Expansion and Strategy - The company plans to expand its market presence in Fujian province, targeting a 10% increase in customer base by the end of 2021[13]. - The company is exploring potential acquisition opportunities to diversify its service offerings and enhance competitive advantage[13]. - The company aims to leverage internal and external favorable conditions to actively develop and provide better services to customers[103].

Financial Performance - For the year ended December 31, 2020, the company's net interest income was RMB 143.5 million, and net profit was RMB 53.9 million, with a loan balance of RMB 869.9 million[14]. - The total amount of loans granted to customers as of December 31, 2020, was RMB 1,112.8 million[23]. - Interest income from loans issued amounted to RMB 143.5 million for the year ended December 31, 2020[23]. - The company's net capital as of December 31, 2020, was RMB 1,230.0 million[23]. - The company reported a net provision for loan impairment losses of RMB 69.1 million in 2020, up from RMB 38.0 million in 2019[49]. - Net profit and total comprehensive income decreased from RMB 74.5 million in 2019 to RMB 53.9 million in 2020[91]. - The total assets as of December 31, 2020, were RMB 1,310.3 million, slightly down from RMB 1,320.8 million in 2019[103]. - The company’s total interest income for the year ended December 31, 2020, was RMB 143.5 million, compared to RMB 161.8 million in 2019[65]. - The company’s interest expenses from bank loans decreased significantly from RMB 8.9 million in 2019 to RMB 2.7 million in 2020[65]. - The company experienced a cash outflow of RMB 265.3 million due to a decrease in loan scale and an increase in financial assets measured at fair value[104]. Loan and Credit Management - The loan principal balance decreased from RMB 1,108.7 million as of December 31, 2019, to RMB 869.9 million as of December 31, 2020, reflecting a strategic adjustment to mitigate increasing credit risks[24]. - The company is focused on maintaining a cautious development attitude by strictly reviewing new customer credit access and loan applications[13]. - The total overdue loans amounted to RMB 70.7 million, representing 8.1% of the total loan principal balance as of December 31, 2020[35]. - The company's non-performing loan ratio increased to 9.9% in 2020 from 6.5% in 2019, with non-performing loan balances rising to RMB 86.9 million from RMB 73.3 million[49]. - The overdue loan principal amount decreased from RMB 80.2 million as of December 31, 2019, to RMB 70.7 million as of December 31, 2020, representing 7.2% and 8.1% of total loan principal balances, respectively[38]. - The company classified loans into categories based on risk, with "normal" loans at RMB 523.8 million (60.3%) and "substandard" loans at RMB 69.9 million (8.0%) as of December 31, 2020[44]. - The provision coverage ratio for non-performing loans decreased to 60.3% in 2020 from 89.0% in 2019[49]. Business Strategy and Operations - The company adjusted its business strategy by reducing pure credit lending and focusing on asset quality, particularly expanding property mortgage business[13]. - The company aims to adapt to market changes and regulatory developments by adjusting its business structure and maintaining communication with industry peers[13]. - The company has streamlined its team to establish a more efficient business unit in response to operational conditions[14]. - The company is committed to finding opportunities amid challenges in the ongoing severe global economic situation[14]. - The company is actively organizing internal training and team building to enhance research on key industries and equity investment projects[14]. - The company has implemented an online information system for business approvals, which has been fully operational, with plans for further optimization[14]. - The company adjusted its strategy to reduce loan sizes in response to the economic impact of COVID-19[23]. Compliance and Governance - The company adheres strictly to the requirements of the Environmental, Social, and Governance (ESG) reporting guidelines as per the listing rules, integrating sustainable development concepts into its corporate strategy and daily operations[198]. - The management team is committed to maintaining strong governance practices and ensuring compliance with regulatory requirements[198]. - The company has established a framework for monitoring compliance with major regulatory requirements[199]. - The management team regularly reviews compliance policies to adapt to changing regulations[199]. - The company aims to enhance its corporate governance practices to align with international standards[199]. - The annual report serves as a key document for stakeholders to assess the company's compliance status[199]. Future Outlook and Growth - The company plans to gradually develop online approval systems and conduct online business in response to the COVID-19 pandemic[152]. - The company aims to become a leading micro-financial service provider in China, enhancing risk control standards and project quality[153]. - The company anticipates that the economic recovery post-pandemic will improve client stability and profitability, with a return to normal credit policies by the central bank[154]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach 1.875 billion[167]. - New product launches are expected to contribute an additional 300 million in revenue, with a focus on expanding the product line in the upcoming year[167]. - The company is considering strategic acquisitions to bolster its market position, with a budget of 200 million allocated for potential mergers and acquisitions[167]. - Market expansion plans include entering three new regions, which are projected to increase market share by 10%[167]. Employee and Operational Efficiency - As of December 31, 2020, the company had 67 employees, all based in Fujian Province, with compensation aligned with relevant laws and regulations[148]. - The company has reported a 5% reduction in operational costs due to efficiency improvements in the supply chain[167]. - The management team emphasized the importance of maintaining a strong cash flow, which currently stands at 500 million, ensuring financial stability for future investments[167].

Financial Performance - The company reported a net profit of RMB 50 million for the first half of 2020, representing a 20% increase compared to the same period last year[28]. - The management has set a revenue guidance of RMB 200 million for the second half of 2020, reflecting a 10% increase from the first half[28]. - Net profit and total comprehensive income decreased from RMB 44.4 million in the six months ended June 30, 2019, to RMB 11.4 million in the same period of 2020, with profit attributable to equity holders of the parent dropping from RMB 41.6 million to RMB 6.5 million[118]. - Interest income from loans issued amounted to RMB 67.5 million for the six months ended June 30, 2020[30]. - The company reported a net interest income of RMB 67.53 million for the six months ended June 30, 2020, compared to RMB 165.40 million for the same period in 2019, showing a significant decline[53]. - Interest income decreased by 27.8% from RMB 960 million in the six months ended June 30, 2019, to RMB 693 million in the same period of 2020[102]. Loan Portfolio and Credit Risk - Total loan portfolio reached RMB 1.2 billion, with a year-on-year growth of 15%[28]. - The loan principal balance decreased from RMB 1,108.7 million as of December 31, 2019, to RMB 922.2 million as of June 30, 2020, reflecting a strategic adjustment to mitigate credit risk[35]. - The overdue loan principal increased from RMB 80.2 million as of December 31, 2019, to RMB 94.1 million as of June 30, 2020, representing 7.2% and 10.2% of total loan principal balances, respectively[42][43]. - The ratio of impaired loans increased to 9.4% as of June 30, 2020, up from 6.5% as of December 31, 2019, indicating a decline in customer repayment ability[57]. - The total amount of impaired loans rose to RMB 87.56 million as of June 30, 2020, compared to RMB 73.31 million as of December 31, 2019, reflecting an increase of approximately 19.5%[57]. - The provision coverage ratio decreased to 51.4% as of June 30, 2020, down from 89.0% as of December 31, 2019, indicating a reduction in the reserves set aside for potential loan losses[53]. - The provision for impairment losses decreased from RMB 65.8 million as of December 31, 2019, to RMB 45.5 million as of June 30, 2020[135]. Business Strategy and Market Expansion - Future outlook indicates a target to expand the loan portfolio by 30% in the next fiscal year[28]. - Market expansion plans include entering two new provinces in China by the end of 2021[28]. - The company is exploring potential mergers and acquisitions to strengthen its market position[28]. - A new product line aimed at small and medium enterprises is set to launch in Q3 2020[28]. - The company plans to enhance its digital marketing strategies to attract more clients in the coming quarters[28]. - The company is focused on expanding its online business capabilities in response to changing economic and social environments[161]. Operational Efficiency and Technology Investment - The company is investing RMB 5 million in new technology development to enhance loan processing efficiency[28]. - The company developed an online training system for employees to facilitate self-paced learning during the pandemic, with plans to gradually resume offline training post-pandemic[161]. - The company plans to adopt a dual model of online and offline operations once the pandemic situation improves[161]. Shareholder Information and Corporate Governance - As of June 30, 2020, Chairman Zhou Yongwei holds 203,932,000 shares, representing 40.79% of the controlled company's equity and 29.99% of the total issued share capital[165]. - Non-executive director Jiang Haiying owns 50,000,000 shares, accounting for 10.00% of the controlled company's equity and 7.35% of the total issued share capital[165]. - The total issued share capital as of June 30, 2020, is 680,000,000 shares, including 180,000,000 H shares and 500,000,000 domestic shares[168]. - The company has a commitment to high levels of corporate governance and shareholder rights protection[195]. - The company has maintained compliance with the corporate governance code as per the listing rules during the reporting period[195]. Financial Position and Cash Flow - Cash and cash equivalents increased from RMB 36.1 million as of December 31, 2019, to RMB 43.1 million as of June 30, 2020, reflecting sufficient liquidity to meet operational needs[131]. - The company's debt ratio decreased from 3.2% as of December 31, 2019, to 0.6% as of June 30, 2020, indicating improved financial stability[119]. - Operating cash flow generated was RMB 54.8 million for the six months ended June 30, 2020, compared to a cash outflow of RMB 34.2 million in the same period of 2019[123]. - Financing activities led to a cash outflow of RMB 40.9 million, including dividend payments of RMB 18.8 million to non-controlling shareholders and repayment of bank loans totaling RMB 20.0 million[127]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the global economy, accelerating the penetration of the internet economy and increasing acceptance of online service models[161]. - In the first half of 2020, the company experienced some disruptions in offline operations due to the pandemic, prompting a shift towards online approval processes and business[161].