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].

Financial Performance - For the six months ended June 30, 2020, the company recorded interest income of approximately RMB 37.3 million, a decrease of about 32.8% compared to RMB 55.5 million for the same period in 2019[16] - The company's net profit after tax for the same period was approximately RMB 14.1 million, down about 53.7% from RMB 30.4 million in 2019, primarily due to reduced interest income and increased loan impairment losses[16] - The company recorded a net profit of approximately RMB 14.1 million for the six months ended June 30, 2020, a decrease of about 53.7% from RMB 30.4 million for the same period in 2019[45] - The company reported a pre-tax profit of RMB 18,880,187, down from RMB 40,343,405 in the prior year, indicating a decrease of about 53.3%[110] - The net profit for the period was RMB 14,060,561, compared to RMB 30,385,417 in the previous year, reflecting a decline of approximately 53.8%[110] - Basic and diluted earnings per share for the period were both RMB 0.02, down from RMB 0.05 in the same period of 2019[110] - The company reported a net cash outflow from operating activities of RMB 2,225,651, compared to an inflow of RMB 11,581,999 in the previous year[120] Loan and Asset Management - As of June 30, 2020, the outstanding loans (before impairment losses) amounted to approximately RMB 921.8 million, an increase of about 2.2% from RMB 901.6 million as of December 31, 2019[16] - The loan portfolio as of June 30, 2020, included RMB 445.7 million in loans exceeding RMB 2 million, accounting for 48.4% of the total outstanding loans[23] - The average daily balance of receivable loans increased from RMB 850.0 million in the first half of 2019 to RMB 907.4 million in the first half of 2020, indicating a growth in loan business scale[37] - The total amount of loans receivable increased to RMB 921,813,445 as of June 30, 2020, from RMB 901,615,352 at the end of 2019, an increase of approximately 2.4%[141] - The company issued loans totaling RMB 26,909,819 during the period, compared to RMB 21,616,917 in the previous year, indicating an increase of about 24.5%[120] Impairment and Overdue Loans - The increase in loan impairment losses was a significant factor affecting the company's profitability during the reporting period[16] - The impairment loan balance rose from approximately RMB 29.7 million as of December 31, 2019, to RMB 36.6 million as of June 30, 2020, reflecting the impact of financial difficulties faced by some clients due to the COVID-19 pandemic[39] - The overdue loan balance increased to RMB 55.2 million as of June 30, 2020, compared to RMB 44.8 million as of December 31, 2019, resulting in an overdue loan ratio of 6.0%[31] - The provision for impairment losses on loans increased to RMB 43,977,576 as of June 30, 2020, compared to RMB 38,923,630 at the end of 2019, an increase of approximately 12.7%[141] - The expected credit loss (ECL) as of June 30, 2020, totaled RMB 43,977,576, an increase from RMB 38,923,630 as of December 31, 2019[164] Equity and Assets - Total assets as of June 30, 2020, were approximately RMB 894.1 million, up about 1.5% from RMB 881.0 million as of December 31, 2019[19] - The company's equity as of June 30, 2020, was approximately RMB 875.5 million, an increase of about 1.6% from RMB 861.4 million as of December 31, 2019[19] - Total liabilities decreased to RMB 18,605,796 from RMB 19,574,036, a decline of about 4.94%[114] - The total equity rose to RMB 875,490,885 from RMB 861,430,324, reflecting an increase of approximately 1.67%[114] Administrative and Operational Efficiency - Administrative expenses decreased by approximately 57.4% to RMB 6.2 million for the six months ended June 30, 2020, down from RMB 14.5 million for the same period in 2019[41] - Total employee compensation for the six months ended June 30, 2020, was approximately RMB 2.0 million, down from RMB 2.4 million for the same period in 2019[65] - The total salary for key management personnel for the six months ended June 30, 2020, was RMB 874,749, an increase from RMB 792,118 in the same period of 2019, reflecting a growth of approximately 10.4%[193] Shareholder Information - Jiangsu Lian Tai Fashion Shopping Plaza Co., Ltd. directly holds approximately 31.65% of the company's equity[76] - As of June 30, 2020, the major shareholder, Bai Tai Group, holds 240,200,000 shares, representing 53.38% of the total issued share capital[83] - Bai Wanlin holds 430,100,000 shares, which accounts for 95.58% of the shares he controls, equating to 71.68% of the total issued share capital[83] - The pledged shares by the controlling shareholder Bai Tai Group and Lian Tai Plaza amount to 45,000,000 shares and 35,000,000 shares, respectively, with a total value of RMB 70,000,000[90] - As of June 30, 2020, at least 25% of the issued shares are held by public shareholders, complying with the public float requirement[91] Compliance and Governance - The company has maintained compliance with the corporate governance code as of June 30, 2020[98] - The audit committee has reviewed the interim financial report and confirmed that it complies with applicable accounting standards and legal requirements[96] - The company has adopted a code of conduct for securities trading by directors and supervisors, ensuring compliance with the required standards[99] Future Outlook and Strategy - The company aims to continue pursuing business opportunities and consolidating its market position despite the ongoing impact of COVID-19[19] - The company is focused on becoming a leading regional micro-lending company, targeting short-term financing needs of SMEs and individual businesses[66] - The company is actively launching a digital and intelligent retail credit platform to meet diverse credit transformation needs of customers[66]

Financial Performance - The company recorded interest income of approximately RMB 104.2 million for the year ended December 31, 2019, a decrease of 3.9% compared to RMB 108.3 million in 2018[25]. - The net profit after tax for the year was approximately RMB 50.1 million, down 27.1% from RMB 68.8 million in the previous year[25]. - The company’s outstanding loan balance (excluding impairment losses) as of December 31, 2019, was approximately RMB 901.6 million, an increase of 7.1% from RMB 841.5 million in 2018[31]. - Total assets as of December 31, 2019, were approximately RMB 881.0 million, up 6.5% from RMB 827.5 million in 2018[31]. - The company’s net asset value as of December 31, 2019, was approximately RMB 861.4 million, an increase of 6.2% from RMB 811.3 million in 2018[31]. - Interest income decreased by approximately 3.9% from RMB 108.3 million in 2018 to RMB 104.2 million in 2019, primarily due to a drop in the effective interest rate from 13.2% to 12.0%[48]. - Average daily balance of receivables increased by approximately 5.6% from RMB 822.3 million in 2018 to RMB 867.9 million in 2019, offsetting some of the decline in interest income[48]. - Administrative expenses rose by approximately 62.7% from RMB 15.3 million in 2018 to RMB 24.9 million in 2019, mainly due to increased professional service fees related to the company's transfer listing[53]. - Provision for impairment losses increased from approximately RMB 3.0 million in 2018 to approximately RMB 11.8 million in 2019, attributed to an increase in impaired loans from RMB 11.5 million to RMB 29.7 million[50]. - Net profit after tax and total comprehensive income decreased by approximately 27.1% from RMB 68.8 million in 2018 to RMB 50.1 million in 2019[56]. Loan and Asset Quality - The percentage of loans classified as "normal" was 95.0% in 2019, down from 98.2% in 2018, indicating a decline in asset quality[40]. - The impaired loan ratio increased to 3.3% in 2019 from 1.4% in 2018, reflecting a deterioration in loan performance[42]. - The company reported a provision coverage ratio of 131.0% in 2019, significantly lower than 236.0% in 2018, suggesting reduced reserves for potential loan losses[42]. - The total number of loans granted in 2019 was 692, up from 564 in 2018, indicating an increase in lending activity[39]. - The company’s overdue loan balance reached RMB 44.848 million in 2019, compared to RMB 14.694 million in 2018, resulting in an overdue loan rate of 5.0%[42]. - The company’s guaranteed loans accounted for 95.1% of the total loan balance as of December 31, 2019, slightly down from 95.2% in 2018[39]. - The company has established a standard and centralized risk management system to address credit risk, which is the most significant risk inherent in its business[162]. Customer Base and Market Position - The company served a total of 526 customers in 2019, an increase of 2.5% from 513 customers in 2018[33]. - The company’s customer base primarily consists of small and micro enterprises, with individual businesses making up 96.6% of the total customer count in 2019[33]. - The company aims to become a leading regional microfinance company focusing on short-term financing needs of SMEs and individual businesses[76]. - The company plans to continue diversifying its customer base and loan offerings to mitigate risks associated with economic cycles[33]. Corporate Governance - The board of directors is responsible for leading and controlling the company, setting strategic goals and policies to enhance shareholder value[106]. - The board consists of 8 members, including 3 independent non-executive directors, meeting the requirement of having at least one with relevant professional qualifications[107]. - The company has implemented corporate governance practices in accordance with the Hong Kong Stock Exchange's Corporate Governance Code[103]. - The company has adopted a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with the listing rules[104]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to assist in fulfilling their responsibilities[123]. - The company has not established a separate corporate governance committee, with the board fulfilling all governance responsibilities[114]. - The company emphasizes diversity in its board selection process, considering various factors including gender, age, cultural background, and professional experience[128]. - The company has a policy in place to ensure that directors with significant interests in transactions abstain from voting on those matters[123]. Dividend and Profit Distribution - The proposed final dividend is RMB 0.025 per share, which is a new initiative for the company[25]. - The board has adopted a dividend policy to distribute at least 30% of distributable profits to shareholders, subject to financial performance and other factors[68]. - The profit distribution plan for the year ended December 31, 2019, includes 10% of the net profit, amounting to RMB 5,011,924 allocated to statutory surplus reserves, and RMB 611,682 allocated to general reserves[167]. - The proposed final dividend for the year ended December 31, 2019, is RMB 0.025 per share, to be paid on or around August 28, 2020[168]. Risk Management and Compliance - The company has established a risk management and internal control system, with no significant risks identified in the 2019 assessment[138]. - The internal audit department is responsible for developing an annual audit plan and evaluating the effectiveness of the risk management and internal control systems[146]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems annually, considering the nature and extent of significant risks[148]. - The company has implemented measures to ensure the confidentiality of insider information and compliance with disclosure regulations[142]. - The company is closely monitoring government policies and regulatory changes that may impact its operations[162]. Employee Compensation and Management - Total employee compensation for the year ended December 31, 2019, was approximately RMB 4.8 million, an increase from approximately RMB 4.5 million in the previous year[73]. - The increase in employee compensation was primarily due to the rise in salaries for directors and key executives from approximately RMB 1.3 million to approximately RMB 1.5 million[73]. - The remuneration committee was established on January 31, 2015, and reviewed the remuneration policies for directors and senior management, with a meeting held once in 2019[132]. - As of December 31, 2019, the remuneration range for senior management (excluding directors) included one individual earning between 0 to 500,000 HKD[134]. Shareholder Communication - The company emphasizes transparency and timely disclosure of information to assist shareholders and investors in making informed investment decisions[152]. - The company has a dedicated website for communication with shareholders and investors, providing access to business developments, financial data, and corporate governance information[152]. - The company has appointed senior management to maintain regular dialogue with institutional investors and analysts to keep them informed of its developments[152].

Financial Performance - For the six months ended June 30, 2019, the company recorded interest income of approximately RMB 555 million, an increase of about 1.7% compared to RMB 546 million for the same period in 2018[45]. - The company's net profit after tax for the same period was approximately RMB 304 million, a decrease of about 12.5% from RMB 347 million in 2018, primarily due to increased expenses related to the transfer to the main board of the Hong Kong Stock Exchange amounting to approximately RMB 74 million[45]. - The company reported a pre-tax profit of RMB 40,343,405 for the first half of 2019, down from RMB 46,444,352 in 2018, representing a decrease of 13.5%[143]. - The net profit attributable to shareholders for the period was RMB 30,385,417, compared to RMB 34,717,665 in the previous year, indicating a decline of 12.7%[143]. - The company's profit after tax and total comprehensive income decreased by approximately 12.5% from RMB 34.7 million for the six months ended June 30, 2018, to RMB 30.4 million for the six months ended June 30, 2019[89]. - Basic and diluted earnings per share for the first half of 2019 were both RMB 0.05, down from RMB 0.06 in the same period of 2018[143]. Assets and Liabilities - Total assets as of June 30, 2019, were approximately RMB 8,609 million, a 4.0% increase from RMB 8,275 million as of December 31, 2018[48]. - The company's total liabilities as of June 30, 2019, were RMB 19,234,357, up from RMB 16,146,427 at the end of 2018, reflecting an increase of 12.9%[145]. - The company’s retained earnings increased to RMB 138,621,960 as of June 30, 2019, compared to RMB 108,236,543 at the end of 2018, showing a growth of 28.1%[145]. - The total amount of overdue loans was RMB 14,564 thousand as of June 30, 2019, slightly down from RMB 14,694 thousand as of December 31, 2018[74]. - The total expected credit loss (ECL) increased to RMB 27,770,318 for the six months ended June 30, 2019, comprising RMB 18,245,591 in Stage 1, RMB 373,730 in Stage 2, and RMB 9,150,997 in Stage 3[195]. Loans and Receivables - As of June 30, 2019, the outstanding loans (before impairment losses) amounted to approximately RMB 8,631 million, an increase of about 2.6% from RMB 8,415 million as of December 31, 2018[45]. - The average daily balance of receivable loans rose from RMB 824.3 million for the six months ended June 30, 2018, to RMB 850.0 million for the same period in 2019, reflecting a growth of approximately 3.0%[81]. - The company reported a total of 241 loans as of June 30, 2019, compared to 239 loans as of June 30, 2018[55]. - Loans receivable as of June 30, 2019, were RMB 863,132,864, up from RMB 841,515,947 at the end of 2018, indicating an increase of 2.6%[182]. - The proportion of guaranteed loans increased to 95.5% of total loans as of June 30, 2019, compared to 95.2% as of December 31, 2018[55]. Expenses and Income - Administrative expenses increased by approximately 146.2% from RMB 5.9 million for the six months ended June 30, 2018, to RMB 14.5 million for the six months ended June 30, 2019, primarily due to increased professional service fees related to the transfer listing[85]. - Net other income for the six months ended June 30, 2018, and June 30, 2019, was RMB 292,878 and RMB 69,523, respectively, with the decrease attributed to reduced gains from the sale of fixed assets and guarantee fee income[87]. - Income tax expenses decreased by approximately 15.1% from RMB 11.7 million for the six months ended June 30, 2018, to RMB 10.0 million for the six months ended June 30, 2019, mainly due to a decrease in profit before tax[88]. - The company recorded a significant increase in administrative expenses, which rose to RMB 14,506,991 from RMB 5,892,567 in the previous year, representing a rise of 146.9%[143]. - Other income, net for the six months ended June 30, 2019, was RMB 69,523, a decrease from RMB 292,878 in 2018, reflecting a decline of 76.3%[174]. Shareholder Structure - Jiangsu Baitai Group holds approximately 40.03% equity in the company, with 240,200,000 shares of domestic stock, representing 53.38% of the relevant share class[110]. - Mr. Bai Wanlin controls 95.58% of the domestic shares, totaling 430,100,000 shares, which accounts for 71.68% of the total equity[110]. - The company has a significant shareholder structure, with major stakeholders including Jiangsu Baitai Group and Lian Tai Plaza, which holds about 31.65% equity[112]. - The equity structure indicates a strong control by the Bai family over the company and its subsidiaries[112]. - The controlling shareholder pledged 45,000,000 shares and 35,000,000 shares as collateral for bank financing amounting to RMB 40,000,000 and RMB 30,000,000 respectively, representing approximately 18.6% of the total domestic shares held by the controlling shareholder[125]. Corporate Governance - The audit committee reviewed the interim report and found that the financial statements complied with applicable accounting standards and legal requirements[131]. - The company has adhered to the corporate governance code as per listing rules during the reporting period[132]. - The company has established a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with the required standards[134]. - The independent review report concluded that there were no matters that would lead to a belief that the interim financial information was not prepared in accordance with International Accounting Standard 34[140]. - The company has maintained a public float of at least 25% of its issued shares as required by the listing rules[126]. Investments - The company holds a 10% passive investment in Min Tai Bank and an 8% passive investment in Zhong Cheng Bank, with limited competition between these banks and the company's main business[129][130]. - The company had no significant investments or capital asset plans as of June 30, 2019, and up to the report date[92]. Accounting Policies - The company adopted IFRS 16 on January 1, 2019, resulting in an increase in property, plant, and equipment by RMB 2,626,966[165]. - The lease liabilities are recognized at the present value of lease payments, using the incremental borrowing rate if the implicit rate is not readily determinable[168]. - The company has chosen a modified retrospective approach for the application of IFRS 16, without restating comparative information for 2018[159]. - The company confirmed that the accounting estimates and assumptions remain consistent with those used in the financial statements for the year ended December 31, 2018[169].