Financial Performance - For the year ended December 31, 2023, the group recorded total interest income of approximately RMB 52.2 million, representing a 0.6% increase from RMB 51.9 million in 2022[6] - The net loss attributable to equity holders of the parent for the year was approximately RMB 8.2 million, a 14.4% improvement from a net loss of RMB 9.6 million in the previous year[9] - For the year ended December 31, 2023, the company recorded a total comprehensive loss of approximately RMB 8.5 million, compared to a comprehensive loss of approximately RMB 9.8 million for the year ended December 31, 2022, primarily due to a reduction in costs from subsidiaries[28] - The company reported a post-tax loss of approximately RMB 8.4 million, an improvement from a post-tax loss of approximately RMB 9.8 million for the previous year[162] Assets and Liabilities - As of December 31, 2023, the total assets of the group were approximately RMB 886.9 million, down 1.2% from RMB 897.8 million in 2022[9] - The group’s net asset value attributable to equity holders was approximately RMB 869.8 million, a decrease of 0.9% from RMB 878.1 million in 2022[9] - The total outstanding loans (before impairment losses) as of December 31, 2023, were approximately RMB 924.0 million[6] - The company’s net asset value of the company as of December 31, 2023, was approximately RMB 871.7 million, a decrease of about 1.0% from RMB 880.2 million as of December 31, 2022[162] Loan Quality and Risk Management - The group’s non-performing loans amounted to RMB 923.965 million, with a normal loan ratio of 94.5%, an increase from 93.4% in the previous year[14] - The group’s loan quality analysis showed a slight decrease in the amount of loans under watch from 3.5% in 2022 to 2.1% in 2023[14] - The company reported a loan impairment ratio of 3.4% for 2023, up from 3.2% in 2022, with an impairment loan balance of RMB 31,051 thousand compared to RMB 29,113 thousand in the previous year[199] - The company has implemented a standard and centralized risk management system to address credit risks and has executed a "separation of loan approval" policy[196] Business Strategy and Development - The company aims to diversify its revenue sources and actively seek business opportunities to contribute to future development[10] - The company plans to innovate its business operations to create greater value for customers, shareholders, and investors[7] - The company aims to expand its business portfolio and diversify revenue sources to provide substantial returns to shareholders[117] - The company is focused on providing efficient short-term financing solutions to meet customer needs[98] Corporate Governance - The board of directors has presented the corporate governance report in the annual report for the year ending December 31, 2023[73] - The company has adopted the corporate governance code and will continue to review its practices to meet increasing regulatory standards[95] - The board consists of at least three independent non-executive directors, fulfilling the requirement of having more than one-third of the board members as independent[103] - The company emphasizes the importance of board independence for effective governance and has mechanisms in place to ensure independent viewpoints[105] Compliance and Regulations - The company has complied with all relevant laws and regulations related to health, safety, and environmental standards, ensuring sustainable business practices[54] - The company is committed to complying with legal and regulatory requirements, ensuring good corporate governance practices[126] Employee Compensation - The company’s total employee compensation for the year ended December 31, 2023, was approximately RMB 3.2 million, compared to approximately RMB 5.5 million for the year ended December 31, 2022[44] Dividends and Financial Instruments - The company did not propose any final dividend for the year[9] - No dividends will be paid for the year ending December 31, 2023, consistent with the previous year[52] - The company has not utilized any financial instruments for hedging purposes as of December 31, 2023[31] Overdue Loans - The company reported a total overdue loan amount of RMB 46.91 million as of December 31, 2023, with 19 borrowers involved[37] - The overdue loan balance as of December 31, 2023, was RMB 50,488 thousand, representing an overdue loan rate of 5.5%, down from 6.7% in 2022[199] Recognition and Awards - The company has been recognized multiple times by local regulatory authorities for its quality microloan services, receiving titles such as "Top Ten Star Microloan Company" and "Model Star Microloan Company"[188]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported interest income of RMB 52.218 million, a slight increase of 0.6% compared to RMB 51.909 million in 2022[26]. - The net loss attributable to the owners of the parent company for the year was RMB 8.233 million, representing a 14.4% improvement from a loss of RMB 9.622 million in the previous year[26]. - Basic loss per share improved to RMB (0.01) from RMB (0.02), reflecting a 14.4% reduction in losses[26]. - Total comprehensive loss for 2023 was RMB 8,464,552, down from RMB 9,785,003 in 2022, showing a decrease of about 13.4%[32]. - The company reported a pre-tax loss of RMB 10,392,317 for 2023, compared to a loss of RMB 11,281,738 in 2022, indicating an improvement of about 7.9%[41]. - The annual loss attributable to equity holders of the parent company decreased to RMB 8,232,972 in 2023 from RMB 9,621,937 in 2022, representing a reduction of approximately 14.4%[29]. - Total sales cost for the year ended December 31, 2023, was RMB 14,825, compared to RMB 278,329 in 2022, indicating a significant reduction[177]. - Revenue from sales of goods and commissions increased significantly to RMB 1,117,846, up from RMB 594,438, marking a growth of approximately 88.1%[191]. Assets and Liabilities - Total assets decreased by 1.2% to RMB 886.918 million from RMB 897.809 million in 2022[26]. - Net assets decreased by 1.0% to RMB 871.726 million compared to RMB 880.191 million in the previous year[26]. - The company's receivables decreased by 0.5% to RMB 872.746 million from RMB 876.876 million in 2022[26]. - The company's equity attributable to owners of the parent decreased by 0.9% to RMB 869.767 million from RMB 878.104 million in the previous year[26]. - The total liabilities for the company amounted to RMB 15.191 million, down from RMB 17.618 million in the previous year[13]. - The company maintains a registered capital of RMB 600 million, unchanged from the previous year[26]. Cash Flow and Expenses - The company recorded a significant reduction in administrative expenses, which fell to RMB 10,117,686 in 2023 from RMB 12,384,225 in 2022, a decrease of approximately 18.3%[29]. - The net cash used in operating activities for 2023 was RMB 2,454,519, compared to RMB 84,755,935 in 2022, indicating a significant improvement in cash flow management[41]. - Employee costs for the year were RMB 3,182,478, a decrease from RMB 4,746,005, reflecting a reduction of approximately 32.9%[190]. - Total compensation for the highest-paid individuals amounted to RMB 1,204,063, a decrease from RMB 1,293,839 in the previous year, reflecting a reduction of approximately 6.9%[9][10]. Income and Gains - Other income and gains for 2023 amounted to RMB 1,786,003, down from RMB 3,341,565 in 2022, reflecting a decline of about 46.4%[29]. - The company recorded a total of RMB 680,290 in interest income from impaired loans, down from RMB 723,639, indicating a decline of about 6.0%[189]. - The total amount of tax benefits recorded was subject to uncertainties due to the interpretation of tax regulations, which may lead to adjustments in future tax liabilities[188]. Accounting Policies and Financial Reporting - The consolidated financial statements include the company and its subsidiaries as of December 31, 2023[43]. - The group has confirmed deferred tax assets related to all deductible temporary differences associated with lease liabilities, with no impact from the revisions on the financial statements[49]. - The group’s accounting policies are consistent with the revised standards, resulting in no significant impact on the financial statements[48]. - The group recognizes revenue from the sale of goods and service fees in accordance with applicable accounting policies, with amounts recorded as deferred income when related to assets[62]. - The company recognizes interest income on loans using the effective interest method, discounting future cash flows to measure impairment losses[90]. - The company assesses impairment losses based on the present value of expected future cash flows[161]. - The company’s accounting policies require significant judgments and estimates that may lead to substantial adjustments in asset or liability values in the future[161]. Impairment and Goodwill - The company reported a provision for impairment losses of RMB 51,611,534 in 2023, slightly down from RMB 51,565,498 in 2022, showing a marginal decrease of about 0.09%[41]. - As of December 31, 2023, the carrying amount of goodwill was zero, down from RMB 2,059,114 in 2022[171]. - The group assesses goodwill impairment by evaluating the recoverable amount of cash-generating units, confirming impairment losses when the recoverable amount is less than the carrying amount[73]. - The group confirms that any impairment losses recognized for goodwill cannot be reversed in subsequent periods[73]. Dividends and Shareholder Information - The company did not propose a final dividend for the year[26]. - Dividends are recognized as liabilities when approved and declared by shareholders[158].

Financial Performance - The company recorded a net loss after tax and total comprehensive income of approximately RMB 12.8 million for the six months ended June 30, 2023, compared to RMB 2.9 million for the same period in 2022[31]. - The group reported a post-tax loss of approximately RMB 12.8 million, an increase from a post-tax loss of approximately RMB 2.9 million for the same period in 2022, primarily due to increased loan defaults from clients in the real estate and construction sectors in Yangzhou[42]. - The company reported a net loss of RMB 12,441,421 for the six months ended June 30, 2023, compared to a net loss of RMB 2,890,627 for the same period in 2022[132]. - The company reported a pre-tax loss of RMB 16,179,311 for the six months ended June 30, 2023, compared to a loss of RMB 2,519,008 in the same period of 2022[113]. - The company recorded a net loss attributable to equity holders of the parent of RMB 12,441,421 for the period, compared to a loss of RMB 2,890,627 in the same period last year[110]. Loan and Impairment Details - The total amount of loans was RMB 944.13 million, with a net impairment loss provision of RMB 33.66 million for the six months ended June 30, 2023[22]. - The impairment loss on goodwill was confirmed at approximately RMB 2.06 million, compared to zero in 2022[1]. - The ratio of impaired loans increased to 5.0% as of June 30, 2023, compared to 3.2% as of December 31, 2022[16]. - The company reported a significant increase in impairment losses on loans and receivables, totaling RMB 33,896,751, compared to RMB 21,964,558 in the previous year[110]. - The impairment loss on receivables and other assets for the six months ended June 30, 2023, was RMB 33,896,751, compared to RMB 21,964,558 for the same period in 2022, showing an increase of about 54.3%[193]. Assets and Liabilities - As of June 30, 2023, the group's total assets were approximately RMB 884.6 million, a decrease of about 1.5% from approximately RMB 897.8 million as of December 31, 2022[42]. - The total assets as of June 30, 2023, amounted to RMB 884,620,514, a decrease from RMB 897,808,664 as of December 31, 2022[111]. - The total liabilities decreased to RMB 17,196,041 from RMB 17,617,820 in the previous period[111]. - The company's total equity as of June 30, 2023, was RMB 867,424,473, down from RMB 880,190,844 at the end of 2022[111]. - The company's net cash flow from operating activities was RMB 390,059, a recovery from a cash outflow of RMB 5,042,264 in the previous year[113]. Income and Expenses - The company reported interest income of approximately RMB 26.1 million for the six months ended June 30, 2023, a decrease of about 0.8% compared to RMB 26.3 million for the same period in 2022[9]. - Administrative expenses decreased by approximately 37.0% to about RMB 5.2 million for the six months ended June 30, 2023, compared to approximately RMB 8.3 million for the same period in 2022[58]. - The company’s employee costs for the six months ended June 30, 2023, amounted to RMB 1,529,910, down from RMB 2,724,047 in the same period of 2022, representing a decrease of approximately 43.9%[193]. - The company’s other income netted RMB 731,318 for the six months ended June 30, 2023, an increase from RMB 584,089 in the same period of 2022, primarily due to reduced expenses from subsidiary operations[29]. - The company reported a tax benefit of RMB 3.4 million for the six months ended June 30, 2023, compared to a tax expense of RMB 0.4 million for the same period in 2022, mainly due to an increase in deferred tax assets[59]. Credit and Risk Management - The company has a credit risk management strategy in place, continuously assessing the credit and financial status of clients to minimize credit risk[87]. - The company has no outstanding hedging instruments as of June 30, 2023, indicating a proactive approach to managing foreign exchange risks[86]. - The company’s management continues to monitor foreign exchange risks and will consider hedging significant foreign exchange exposures as necessary[86]. Shareholder and Capital Structure - The controlling shareholder, Bai Tai Group, holds approximately 40.04% of the equity interest in the company[72]. - The company has a total of 450,000,000 issued domestic shares as of June 30, 2023[93]. - The company maintained a public float of at least 25% of its issued shares as of June 30, 2023[102]. Future Outlook and Strategy - The company plans to continue expanding its loan services to rural areas, aligning with its core business strategy[136]. - The company primarily generates revenue from providing loans to small and micro enterprises in Yangzhou, Jiangsu Province[124]. - The company has no significant divisions other than its lending business[124].

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之內容概不負責，對其準確性或完整性亦不發表任何 聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 Yangzhou Guangling District Taihe Rural Micro-finance Company Limited 揚 州 市 廣 陵 區 泰 和 農 村 小 額 貸 款 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1915) 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財務概要 (1) 截至二零二三年六月三十日止六個月，揚州市廣陵區泰和農村小額貸款股份有限公司（「本公 司」，連同其附屬公司統稱「本集團」）錄得利息收入約人民幣26.1百萬元，較二零二二年同 期約人民幣26.3百萬元減少約0.8%。 (2) 截至二零二三年六月三十日止六個月，本集團稅後虧損約為人民幣12.8百萬元，而截至二 零二二年六月三十日止六個月則錄得稅後虧損約人民幣2.9百萬元。虧損增加主要歸因於揚 州市地區的房地產和建築行業持續低 ...

Financial Performance - The company reported total interest income of approximately RMB 51.9 million for the year ended December 31, 2022, a decrease of 14.3% compared to RMB 60.5 million in the previous year[5]. - The company experienced a net loss attributable to shareholders of approximately RMB 9.6 million, a significant decline of 311.0% from a profit of RMB 4.6 million in the prior year[5]. - Total assets as of December 31, 2022, were approximately RMB 897.8 million, a decrease of 0.7% from RMB 904.5 million in the previous year[10]. - The company’s net asset value as of December 31, 2022, was approximately RMB 880.2 million, down 0.8% from RMB 887.7 million a year earlier[10]. - The company recorded a net loss of approximately RMB 9.8 million for the year ended December 31, 2022, compared to a net profit of approximately RMB 4.6 million in 2021[33]. - The company recorded no net profit for the year ended December 31, 2022, resulting in no distribution to statutory surplus reserves and a zero allocation to general reserves[171]. Loan Portfolio and Customer Base - The company’s outstanding loan balance (before impairment losses) increased to approximately RMB 924.2 million, up 10.3% from RMB 837.9 million as of December 31, 2021[10]. - The number of customers served by the company decreased from 478 in 2021 to 388 in 2022[11]. - The total outstanding loans as of December 31, 2022, amounted to RMB 924.168 million, an increase from RMB 837.893 million in 2021[13]. - The loan portfolio classified by size shows that loans over RMB 2 million accounted for 74.7% of the total outstanding loans in 2022, compared to 47.8% in 2021[13]. - The company issued loans to 388 customers during the year, a decrease of approximately 18.8% compared to 478 customers in the previous year[163]. Interest and Expenses - Interest expenses for the year ended December 31, 2022, were RMB 108,023, a decrease from RMB 200,093 in 2021[21]. - The decline in interest income was primarily attributed to a decrease in actual interest rates and the ongoing impact of the COVID-19 pandemic on the local economy[10]. - The actual interest rate charged to customers decreased from 7.3% in 2021 to 6.2% in 2022[20]. - Administrative expenses rose by approximately 11.8% from RMB 11.1 million in 2021 to RMB 12.4 million in 2022, mainly due to increased employee costs[29]. - Sales and marketing expenses surged by approximately 771.0% from RMB 0.3 million in 2021 to RMB 2.8 million in 2022, attributed to higher promotional costs for business expansion[30]. Risk Management and Compliance - The company has implemented a risk management system to address credit risks and has adopted a loan classification method based on the "five-level classification principle"[16]. - The non-performing loan ratio increased to 6.7% in 2022 from 5.4% in 2021[18]. - The provision coverage ratio improved to 162.7% in 2022 from 105.9% in 2021[18]. - The company has established an effective risk management and internal control system to comply with corporate governance codes[133]. - No significant risks were identified in the risk assessment conducted for the year ending December 31, 2022[134]. Corporate Governance - The company emphasizes the importance of effective corporate governance to ensure transparency and accountability in operations[78]. - The board consists of 7 members, including 3 independent non-executive directors, meeting the listing rules requirements[90]. - The board will regularly evaluate its performance to maintain a balance of skills, experience, and diverse perspectives[85]. - The company has adopted a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with regulations[80]. - The company has established mechanisms to ensure the board receives independent views and opinions, reviewed annually[90]. Leadership and Management - The company has been led by Mr. Bai Wanlin as the Executive Director and Chairman since its establishment in November 2008[55]. - Ms. Bai Li has been the CEO and General Manager since May 2013, overseeing overall business development and daily operations[57]. - The company has a strong leadership team with extensive experience in the garment manufacturing and sales industry[63]. - The company has established a succession plan to ensure a supply of candidates for key positions when senior leaders leave or retire[117]. Shareholder Relations and Dividends - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[172]. - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future growth, allowing for the declaration of interim, final, and special dividends as deemed appropriate[159]. - The board of directors attended the annual general meeting, providing an opportunity to understand and respond to shareholder opinions[162]. Employee and Workplace Policies - The company maintains a zero-tolerance policy towards workplace harassment or abuse[120]. - The company is committed to providing equal opportunities in employment and ensuring no discrimination occurs in the workplace[120]. - Senior management compensation is determined based on experience, responsibilities, and market conditions, with annual reviews of comparable companies' compensation levels[129]. Financial Reporting and Audit - The board is responsible for preparing the financial statements in accordance with statutory requirements and applicable accounting standards[132]. - The audit committee reviewed the company's full-year performance for the year ending December 31, 2021, and the interim results for the six months ending June 30, 2022[104]. - As of December 31, 2022, the total fees paid/owed to the company's auditor amounted to RMB 1,718,000, with RMB 1,697,000 for audit services and RMB 21,000 for non-audit services[149].

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之內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示概不就因本公告全部或任何部份內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 Yangzhou Guangling District Taihe Rural Micro-finance Company Limited 揚 州 市 廣 陵 區 泰 和 農 村 小 額 貸 款 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1915） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 財務概要 二零二二年 二零二一年 變動 人民幣千元 人民幣千元 經營業績 利息收入 51,909 60,546 -14.3% 歸屬於母公司擁有人年內溢利╱（虧損） (9,622) 4,561 -311.0% 每股基本盈利╱（虧損） (0.02) 0.01 -314.5% 財務狀況 應收貸款及賬款 876,876 803,143 9.2% 股本 600,000 600,000 0.0% 總資產 897,809 904,476 -0.7% ...

Financial Performance - The company reported a net loss of approximately RMB 2.9 million for the six months ended June 30, 2022, compared to a net profit of approximately RMB 14.8 million for the same period in 2021, primarily due to the impact of COVID-19 on the local economy and increased loan impairment losses[10]. - The interest income for the six months ended June 30, 2022, decreased by 20.4% to RMB 26.3 million from RMB 33.1 million for the same period in 2021, primarily due to a reduction in average daily loan balances[29]. - The company recorded a provision for impairment losses of RMB 22.0 million for the six months ended June 30, 2022, compared to RMB 9.4 million for the same period in 2021, reflecting increased credit risk due to the pandemic[33]. - The company reported a pre-tax loss of RMB 2,519,008, contrasting with a profit of RMB 19,836,548 in the same period last year[111]. - The net loss after tax for the period was RMB 2,890,627, compared to a profit of RMB 14,827,854 in the previous year[111]. - The company reported a significant increase in impairment losses, with a provision of RMB 21,964,558 for the six months ended June 30, 2022, compared to RMB 9,423,869 in the previous year[119]. Loan Portfolio and Asset Quality - As of June 30, 2022, the company's outstanding loans (before impairment losses) amounted to approximately RMB 845.1 million, an increase of about 0.9% from RMB 837.9 million as of December 31, 2021[10]. - The impaired loan ratio as of June 30, 2022, was 4.1%, up from 3.9% as of December 31, 2021, indicating a slight deterioration in asset quality[21]. - The overdue loan balance as of June 30, 2022, was RMB 43,972 thousand, a decrease from RMB 45,191 thousand as of December 31, 2021, resulting in an overdue loan ratio of 5.2%[24]. - The total amount of loans and receivables was RMB 805,469,679 as of June 30, 2022, compared to RMB 803,142,509 at the end of 2021[152]. - The total expected credit loss amounted to RMB 39,729,946, an increase from RMB 34,847,821 as of December 31, 2021, reflecting a growth of approximately 11%[157]. Operational Metrics - The company provided loans to 131 customers in the six months ended June 30, 2022, compared to 161 customers in the same period in 2021[11]. - The company issued a total of 141 loans in the first half of 2022, a decrease from 228 loans issued in the same period of 2021[17]. - The average daily balance of receivable loans decreased to RMB 832.3 million for the six months ended June 30, 2022, from RMB 868.3 million for the same period in 2021[29]. - The actual annual interest rate charged decreased to 6.3% for the six months ended June 30, 2022, down from 7.6% for the same period in 2021[29]. Administrative and Other Expenses - Administrative expenses increased by approximately 69.8% to RMB 8.3 million for the six months ended June 30, 2022, from RMB 4.9 million for the same period in 2021, primarily due to the expansion and promotion costs of subsidiaries[43]. - Other income decreased to RMB 584,089 for the six months ended June 30, 2022, from RMB 1,054,584 for the same period in 2021, mainly due to a reduction in guarantee service scale[44]. - Income tax expenses decreased by approximately 92.6% to RMB 0.4 million for the six months ended June 30, 2022, from RMB 5.0 million for the same period in 2021, primarily due to a decrease in pre-tax profit[45]. Shareholder and Equity Information - As of June 30, 2022, the major shareholder, Bai Tai Group, holds approximately 40.04% of the shares, equating to 180,200,000 shares[81]. - Bai Wanlin holds 322,100,000 shares, representing 71.58% of the controlled corporation's equity[81]. - The total issued shares as of June 30, 2022, is 600,000,000, with 450,000,000 being domestic shares[83]. - The company has maintained a public float of at least 25% of its issued shares[90]. Future Outlook and Strategy - The company aims to become a leading regional microfinance company focused on meeting the short-term financing needs of SMEs and individual businesses[67]. - The company anticipates low risks of customer loan defaults as the economy recovers from the impacts of COVID-19[67]. - The company plans to enhance its digital and intelligent retail credit platform to meet diverse customer credit needs[67]. - The board believes that the integration of 5G networks with AI and IoT will create significant market potential and opportunities for business expansion[67]. - The company will continue to seek opportunities to diversify its revenue sources and expand its business portfolio[67]. Compliance and Governance - The company has maintained compliance with the corporate governance code as of June 30, 2022[99]. - The audit committee has reviewed the interim financial statements and confirmed compliance with applicable accounting standards[96]. - No significant matters related to the company's business or financial performance were noted by the board after June 30, 2022[101].

Financial Performance - Total interest income for the year ended December 31, 2021, was approximately RMB 60.5 million, a decrease of 19.8% from RMB 75.5 million in 2020[9]. - Profit attributable to owners of the parent for the year was RMB 4.6 million, down 87.6% from RMB 36.7 million in 2020[9]. - The company's basic earnings per share decreased by 83.3% to RMB 0.01 from RMB 0.06 in the previous year[9]. - The group's net profit after tax was approximately RMB 4.6 million, down approximately 87.6% from approximately RMB 36.7 million for the year ended December 31, 2020, primarily due to the impact of the COVID-19 pandemic on the local economy[17]. - The post-tax profit and total comprehensive income decreased by approximately 87.6% from about RMB 36.7 million for the year ended December 31, 2020, to about RMB 4.6 million for the year ended December 31, 2021[76]. Assets and Liabilities - As of December 31, 2021, the total outstanding loan balance was approximately RMB 837.9 million[11]. - Total assets as of December 31, 2021, were approximately RMB 904.5 million, a slight decrease of 0.4% from RMB 907.8 million in 2020[9]. - As of December 31, 2021, the group's outstanding loan balance (before impairment losses) was approximately RMB 837.9 million, a decrease of about 10.2% from approximately RMB 932.7 million as of December 31, 2020[17]. - The total impaired loan balance rose to RMB 32,914 thousand in 2021 from RMB 27,388 thousand in 2020[28]. - The overdue loan balance increased significantly to RMB 45,191 thousand in 2021, compared to RMB 27,388 thousand in 2020, resulting in an overdue loan ratio of 5.4%[28]. Loan Portfolio and Risk Management - The loan portfolio was classified as follows: guaranteed loans accounted for 99.2%, mortgage loans for 0.6%, and unsecured loans for 0.2%[24]. - The outstanding loans classified under the "five-level classification principle" showed that 94.5% were normal loans, while 1.5% were under special attention, and 3.4% were classified as substandard[26]. - The group has strengthened its loan impairment loss provisions in response to the economic situation, increasing efforts to write off bad loans[17]. - The loan impairment ratio increased from 2.9% as of December 31, 2020, to 3.9% as of December 31, 2021[28]. - The provision for impairment losses increased from approximately RMB 15.4 million in 2020 to RMB 46.9 million in 2021, attributed to the ongoing impact of COVID-19[38]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency by exploring advanced financial technologies[11]. - The company will continue to implement cost control and effective risk management strategies to maintain sustainability and competitiveness[11]. - The company is focusing on expanding its loan offerings to enhance market presence[47]. - The company has a strategy in place for loan impairment provisions, reflecting a proactive approach to risk management[47]. - The company aims to become a leading regional microfinance company, focusing on short-term financing needs of SMEs and individual businesses[99]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2021[129]. - The board of directors is responsible for leading and controlling the company, setting corporate and strategic goals, and monitoring the group's operational activities and financial performance[132]. - The company has established a clear separation of roles between the Chairman and the CEO to ensure balanced power distribution[138]. - The board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with specific responsibilities[150]. - The company emphasizes the importance of transparency and accountability in its operations[129]. Shareholder Engagement - The company has adopted a shareholder communication policy since May 2017 to ensure transparency and timely disclosure of information to shareholders and investors[190]. - The company encourages shareholders to submit proposals in writing if they hold 3% or more of the voting shares, which must be submitted at least ten days before the general meeting[195]. - The company has established a platform on its website for public access to information regarding business development, financial data, and corporate governance practices[190]. - The company aims to enhance communication with investors and maintain strong relationships through regular updates and engagement initiatives[191]. - Shareholders holding 10% or more of the voting shares can request the board to convene an extraordinary general meeting, and if the board does not respond within 30 days, they may petition the supervisory board to do so[192].

Financial Performance - For the six months ended June 30, 2021, the company recorded interest income of approximately RMB 33.1 million, a decrease of about 11.3% compared to RMB 37.3 million for the same period in 2020[37]. - The company's net profit after tax for the same period was approximately RMB 14.8 million, an increase of about 5.0% from RMB 14.1 million in 2020, primarily due to reduced administrative expenses and loan impairment losses[37]. - The company reported a net profit of RMB 14,827,854 for the six months ended June 30, 2021, representing an increase of 5.5% compared to RMB 14,060,561 for the same period in 2020[129]. - Profit after tax and total comprehensive income rose by approximately 5.0% from RMB 14.1 million to RMB 14.8 million, driven by increased guarantee fee income and reduced administrative expenses[64]. - The pre-tax profit for the six months ended June 30, 2021, was RMB 19,836,548, compared to RMB 18,880,187 in the same period of 2020, indicating an increase of about 5.1%[137]. Assets and Liabilities - Total assets as of June 30, 2021, were approximately RMB 911.7 million, an increase of about 0.4% from RMB 907.8 million as of December 31, 2020[40]. - The company's total liabilities decreased significantly to RMB 13,687,577 from RMB 24,605,222 as of December 31, 2020, a reduction of 44.5%[131]. - The company's cash and cash equivalents decreased to RMB 656,799 from RMB 803,738 as of December 31, 2020, reflecting a decline of 18.3%[131]. - The total current assets amounted to RMB 200,000,000, with net assets also at RMB 200,000,000[184]. Loan Portfolio - As of June 30, 2021, the company's outstanding loans (before impairment losses) amounted to approximately RMB 848.0 million, a decrease of about 9.1% from RMB 932.7 million as of December 31, 2020[37]. - The total amount of loans classified as "normal" was RMB 817,806 thousand, representing 96.4% of total loans as of June 30, 2021[49]. - The overdue loan balance increased to RMB 29,171 thousand as of June 30, 2021, from RMB 27,388 thousand as of December 31, 2020[51]. - The company reported a total of RMB 817,806,329 in Stage 1 loans as of June 30, 2021, down from RMB 905,290,855 as of December 31, 2020, reflecting a decline of approximately 9.6%[168]. - The company’s Stage 2 loans increased to RMB 10,916,561 as of June 30, 2021, from zero as of December 31, 2020, indicating the emergence of new credit risk[168]. Impairment and Provisions - The impairment loss provision decreased from approximately RMB 12.0 million in 2020 to approximately RMB 9.4 million in 2021, attributed to a reduction in the scale of the loan business[59]. - The expected credit loss (ECL) provision as of June 30, 2021, was RMB 28,239,525, compared to RMB 39,346,281 as of December 31, 2020, indicating a decrease of about 28.2%[181]. - The provision for impairment losses was RMB 32,988,068 for the six months ended June 30, 2021, compared to RMB 37,180,582 for the same period in 2020, indicating a decrease of 11.8%[129]. Customer Base and Business Strategy - The company provided loans to 161 customers in the first half of 2021, compared to 116 customers in the same period of 2020, indicating a growth in customer base[41]. - The customer composition included 0.6% small and micro enterprises and 99.4% individual businesses as of June 30, 2021[41]. - The company aims to become a leading regional microfinance company, focusing on short-term financing needs of SMEs and individual businesses[86]. - The company continues to focus on providing loans and financial services to the agricultural sector, which remains its primary business strategy[141]. Investments and Joint Ventures - The company invested RMB 80 million in a joint venture with Yangzhou Tuyun IoT Technology Co., Ltd., holding a 40% stake, focusing on AI and IoT technology development[66]. - A joint venture was established during the reporting period, leveraging AI and IoT technologies to enhance business capabilities[86]. - The company has established a new associate company focused on technology promotion and application services related to artificial intelligence and the Internet of Things[183]. Shareholder Information - A total of 108,000,000 shares were transferred to three independent shareholders, reflecting confidence in the company's future growth[87]. - The major shareholder, Ba Tai Group, holds approximately 53.38% of the shares, equating to 240,200,000 shares[104]. - The company has pledged a total of 85,000,000 shares for bank financing, valued at RMB 70 million[110]. - Public shareholders hold at least 25% of the issued shares, complying with listing rules[111]. Corporate Governance - The company maintained compliance with the corporate governance code as of the report date[118]. - There were no significant matters related to the company's business or financial performance noted by the board after the reporting period[120]. - The company continues to ensure adherence to the code of conduct for securities trading by its directors and supervisors[119].

Financial Performance - For the year ended December 31, 2020, the company recorded total interest income of approximately RMB 755 million, a decrease of 27.5% compared to RMB 1,042 million for the year ended December 31, 2019[12]. - The net profit after tax for 2020 was approximately RMB 367 million, down 26.7% from RMB 501 million in 2019[12]. - The company did not propose a final dividend for the year ended December 31, 2020, compared to a proposed dividend of RMB 0.025 per share in 2019[12]. - Profit after tax and total comprehensive income decreased by approximately 26.7% from about RMB 50.1 million in 2019 to approximately RMB 36.7 million in 2020[45]. - Income tax expenses decreased by approximately 29.2% from about RMB 17.8 million in 2019 to approximately RMB 12.6 million in 2020, mainly due to a reduction in profit before tax[44]. - The company’s auditor fees for the year ended December 31, 2020, totaled RMB 1,622,000, comprising RMB 1,604,000 for audit services and RMB 18,000 for non-audit services[143]. Loan and Asset Management - As of December 31, 2020, the outstanding loan balance (before impairment losses) was approximately RMB 932.7 million, an increase of 3.4% from RMB 901.6 million as of December 31, 2019[19]. - Total assets as of December 31, 2020, were approximately RMB 907.8 million, up 3.0% from RMB 881 million in 2019[19]. - The company's net asset value as of December 31, 2020, was approximately RMB 883.2 million, an increase of 2.5% from RMB 861.4 million in 2019[19]. - The total number of loans granted decreased to 633 in 2020 from 692 in 2019, with a notable decline in guaranteed loans from 662 to 555[27]. - The company maintained a high level of guaranteed loans, which constituted 96.0% of the total loan portfolio in 2020, compared to 95.1% in 2019[27]. - As of December 31, 2020, the total outstanding loans amounted to RMB 932,679 thousand, an increase from RMB 901,615 thousand as of December 31, 2019, representing a growth of approximately 3.0%[29]. Risk Management and Compliance - The company has established a risk management system that includes risk identification, assessment, and management, with no significant risks identified in the 2020 assessment[132]. - The internal control system aims to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[134]. - The board of directors is responsible for reviewing the effectiveness of the risk management and internal control systems annually, with no significant deficiencies identified in the latest review[142]. - The company has implemented measures to ensure the confidentiality of insider information and compliance with disclosure regulations[136]. - The company has complied with all relevant laws and regulations in China and Hong Kong as of December 31, 2020[157]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the year ending December 31, 2020[91]. - The board of directors is responsible for leading and controlling the company, aiming to develop the business and enhance shareholder value[93]. - The board consists of 7 members, including 3 independent non-executive directors, ensuring compliance with listing rules[95]. - The board held 4 meetings and 1 annual general meeting during the year ending December 31, 2020, with full attendance from all directors[106]. - The company has established a formal service agreement with each director, with a term of 3 years[96]. - All independent non-executive directors have confirmed their independence in accordance with listing rules[95]. Employee and Community Engagement - Total employee compensation for the year ended December 31, 2020, was approximately RMB 3.9 million, down from approximately RMB 4.8 million in 2019, mainly due to benefits from social insurance reductions related to the COVID-19 pandemic[61]. - The company has encouraged participation from employees, customers, suppliers, and stakeholders in community-benefiting environmental and social activities[62]. - The company made donations totaling RMB 50,000 during the year, compared to zero in 2019[183]. Strategic Initiatives - The company launched a digital financial product in 2020 to provide unsecured credit loans to qualified customers, enhancing risk management through digital technology[20]. - The COVID-19 pandemic has accelerated the digital transformation in the credit industry, prompting the company to launch a digital retail credit platform[64]. - The company aims to become a leading regional microfinance institution, focusing on short-term financing needs for SMEs and individual businesses[64]. - The company plans to continue expanding its loan business by leveraging profits from previous years to enhance its lending capacity[37]. Financial Health and Future Outlook - The company has confirmed that all directors and supervisors have adhered to the established trading code throughout the review year[92]. - The company has no significant investments or future plans for major capital assets as of December 31, 2020[49]. - The company has a capital debt ratio of 0.15% as of December 31, 2020, compared to not applicable in 2019[51]. - The company has strengthened its competitive advantage since its successful listing on the stock exchange in May 2017 and subsequent transfer of listing in July 2019[155]. - The financial summary of the company's performance over the past five fiscal years is available in the annual report[164].