Core Viewpoint - The company anticipates a significant increase in net profit for the six months ending June 30, 2025, driven by an increase in loan amounts [1] Financial Performance - The group expects to record a consolidated net profit of no less than RMB 200 million for the specified period, compared to a consolidated net profit of RMB 120.3 million in the same period last year, representing a growth of at least 65% [1] - The adjusted consolidated net profit is also projected to be no less than RMB 200 million, up from RMB 120.7 million year-on-year, indicating similar growth expectations [1] Growth Drivers - The anticipated growth in both consolidated net profit and adjusted consolidated net profit is primarily attributed to an increase in loan amounts during the period [1]

香港交易及結算所有限公司和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份內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 正 面 盈 利 預 告 本公告乃根據上市規則第 13.09 條及內幕消息條文作出。 董事會謹此通知股東、本公司其他證券的持有人以及潛在投資者，根據目前所得資 料及對本集團最新未經審核綜合管理賬目的初步評估，本集團預期於期內將錄得綜 合淨利潤不少於人民幣 200.0 百萬元，以及綜合經調整淨利潤(1)不少於人民幣 200.0 百萬元，相較同期綜合淨利潤為人民幣 120.3 百萬元，以及綜合經調整淨利 潤(1)人民幣 120.7 百萬元增長不少於 65%。 股東、本公司其他證券的持有人以及潛在投資者請留意，於買賣本公司證券時務須 審慎行事。 本公告乃由維信金科控股有限公司（「本公司」，連同其附屬公司統稱為「本集 團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第 13.09 條和 香港法例第 571 章證券及期貨條例第 XIVA 部的內幕消息條文（定義見上市規則） 刊發。 本公司董事會（「董事會」 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 維信金科控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02003 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 489,459,789 | | 0 | | 489,459,789 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 489,459,789 | | 0 | | 489,459,789 | 第 2 頁 共 10 頁 v 1.1.1 | 1. 股份分類 | 普通股 | 股份類別 ...

Core Viewpoint - In 2024, the integration of digital economy and fintech is leading to a paradigm shift in consumer rights protection from passive defense to proactive governance, exemplified by Weixin Jinke's comprehensive consumer protection ecosystem driven by both technological and service capabilities [1] Group 1: Institutional Framework - Weixin Jinke continues to build a "4+12" consumer protection management system, optimizing regulations such as the Consumer Rights Protection Management System and Complaint Management System to enhance adaptability and effectiveness [3] Group 2: Business Integration - To better protect consumer rights, Weixin Jinke is enhancing the integration of consumer protection concepts with business operations through product experience optimization and standardized customer management [5][6] - Product experience optimization includes detailed displays of guarantee fees and the establishment of a hesitation period for first-time borrowers to safeguard consumer rights [5] Group 3: Security Enhancement - In 2024, Weixin Jinke's Information Security Management Committee is focusing on compliance, technical protection, monitoring, and anti-fraud efforts, achieving no data breach incidents throughout the year [8] - The company has received multiple industry certifications, including a one-star Personal Information Protection Impact Assessment (PIA) and a Data Security Management Capability Certification (DSMC) [8] Group 4: AI Empowerment - Weixin Jinke is leveraging AI to enhance service efficiency and warmth, introducing features like intelligent voice navigation and service progress tracking, achieving a 92% accuracy rate in customer demand recognition and a 25% increase in issue resolution within 24 hours [9] Group 5: Knowledge Dissemination - The company is committed to enhancing consumer self-protection capabilities through knowledge-sharing initiatives, conducting four consumer rights protection knowledge dissemination events reaching 600 participants and publishing nearly 200 educational articles [11] - The "Weixin People's Daily on Consumer Protection" video series and the consumer protection classroom on the DouDouQian platform have engaged over 90,000 users, contributing to a safer and healthier consumption ecosystem [11] Group 6: Social Responsibility - Weixin Jinke prioritizes consumer rights protection as a core aspect of corporate social responsibility, especially during natural disasters and public emergencies, establishing emergency service mechanisms and compassionate policies for affected users [13] - The company's practices in 2024 demonstrate that true consumer protection innovation requires the organic integration of institutional frameworks, technological defenses, and service warmth [13]

Group 1 - The core viewpoint of the article highlights the commitment of Weixin Jinke to public welfare through the "100 Reading Corners Project," which aims to enhance reading resources in rural schools across China [1][2]. - The project has successfully donated over 20,000 books to 100 rural primary schools in 23 provinces, addressing the significant disparity in reading resources between urban and rural children [1][2]. - The reading rate among minors has increased from 77% in 2012 to 86.2% in 2023, with the average number of books read per person rising from 5.49 to 11.39, indicating a growing interest in reading among children [1]. Group 2 - The "100 Reading Corners Project" received applications from 471 classes nationwide in its first phase, ultimately donating over 10,000 books to 50 rural primary schools in 21 provinces, demonstrating a strong response to the urgent needs of rural education [2]. - Firefly Public Welfare has reached over 7,000 schools and benefited 5 million rural students through various initiatives, showcasing the extensive impact of the program [2]. - Weixin Jinke plans to continue optimizing project mechanisms and deepen collaborations with organizations like Firefly Public Welfare, exploring diverse educational support paths and leveraging technology to enhance public welfare [3].

Group 1 - Jianbang High-Tech submitted its listing application to the Hong Kong Stock Exchange, focusing on silver powder production for photovoltaic silver paste, with 2024 revenue of approximately 3.95 billion yuan, a year-on-year increase of 41.99% [1] - The company reported a gross profit of 131 million yuan, up 21.96% year-on-year, and a net profit of about 79 million yuan, reflecting a 31.95% increase [1] - Jianbang High-Tech aims to leverage its listing opportunity to expand its market presence and enhance competitiveness in the photovoltaic silver powder sector [1] Group 2 - Weixin Jinke announced that its minimum public shareholding has been restored, with approximately 163 million shares held by the public, accounting for 33.34% of total issued shares [2] - This restoration is crucial for maintaining the company's listing status and enhancing market confidence [2] - The company needs to continue monitoring its public shareholding to comply with relevant regulations and improve business performance [2] Group 3 - Weihong Group Holdings announced a further delay in publishing its 2024 annual results, now expected on May 12, due to incomplete bank confirmations and valuation reports [3] - The company's shares have been suspended from trading since April 1, 2024, indicating significant challenges in financial reporting [3] - The uncertainty surrounding the financial data may affect investor confidence and market perception of the company's financial health [3] Group 4 - China Longgong reported investments in various wealth management products, with unredeemed principal amounts of approximately 1.246 billion yuan in Bank of China products, 1.126 billion yuan in CCB products, 620 million yuan in CITIC products, and 410 million yuan in Minsheng products [4] - This diversified investment strategy reflects the company's cautious approach to fund management and risk diversification [4] - However, the high unredeemed principal amounts indicate potential market and liquidity risks that investors should monitor [4] Group 5 - Xunzhong Co., a new third board innovative layer enterprise, submitted its listing application to the Hong Kong Stock Exchange, previously having filed a prospectus on July 26, 2024 [5] - The company is positioned as a leading provider of intelligent cloud communication services, holding a 1.8% market share in China's cloud communication service market in 2023 [5] - The renewed listing application demonstrates the company's commitment to expanding its international market presence and enhancing its competitiveness in the global cloud communication sector [5] Group 6 - The Hang Seng Index closed at 22,504.68, with a gain of 1.74% on May 2 [6] - The Hang Seng Tech Index rose by 3.08%, closing at 5,244.06 [6] - The National Enterprises Index increased by 1.92%, ending at 8,231.04 [6]

Financial Performance - In 2024, the company achieved robust operational results and financial performance, benefiting from China's economic stimulus policies introduced in September 2024[8]. - The total revenue for 2024 was RMB 39.297 billion, an increase of 10.1% from RMB 35.695 billion in 2023[22]. - Net profit and adjusted net profit for 2024 were RMB 4.782 billion and RMB 4.787 billion, respectively, reflecting increases of 5.3% and 5.1% compared to RMB 4.539 billion and RMB 4.556 billion in 2023[23]. - Operating profit for the year was RMB 636.2 million, a 5.2% increase from RMB 604.8 million in 2023[28]. - Net profit for the year was RMB 478.2 million, up 5.3% from RMB 453.9 million in the previous year[28]. - Total revenue increased by 10.1% to RMB 3,929.7 million from RMB 3,569.5 million year-on-year, driven by higher average outstanding loan balances and increased contributions from other income sources[49]. - Interest and similar income rose by 33.2% to RMB 1,968.2 million, compared to RMB 1,477.3 million in the previous year[28]. - The overdue rate for new loans in mainland China stabilized at 0.58% in Q4 2024, an 18.3% decrease year-on-year[17]. - The loan facilitation model contributed to a total loan amount of RMB 43.03 billion, accounting for 77.2% of the total loan amount realized[19]. Customer and Market Development - The company continues to transition towards higher-quality borrowers, enhancing credit risk models and improving identification and classification accuracy of new quality customer segments[9]. - The cumulative registered users in mainland China reached 158 million by December 31, 2024, representing a year-on-year growth of 9.7%[18]. - The proportion of repeat borrowers accounted for 85.9% of the total loan volume in 2024[33]. - The company launched the "CreFIT Cash Loan" product in July 2024, providing convenient and flexible short-term financing solutions, demonstrating its commitment to financial innovation[11]. - The company established a partnership with China Mobile Hong Kong in May 2024, becoming the first lending institution in the region to strengthen customer acquisition channels[11]. Risk Management and Compliance - The company emphasizes compliance with regulatory requirements, maintaining constructive dialogue with regulators to ensure operational strategies align with evolving regulations[10]. - The company plans to enhance compliance management and consumer protection through a newly established Consumer Protection Committee[24]. - The overdue rates for one to three months and over three months decreased to 3.39% and 3.02% respectively in Q4 2024 due to enhanced risk control measures[40]. - The company has implemented a risk management framework that includes a risk management committee composed of senior management[152]. - The board is responsible for maintaining an effective risk management and internal control system, addressing various risks including credit and liquidity risks[149]. Operational Efficiency and Technology - The company reported continuous improvement in operational efficiency and profit structure through the integration of AI technology with risk control models[8]. - The company is actively exploring generative AI technology to improve operational efficiency and user experience[20]. - The launch of the AI model "Jinwu" aims to enhance customer service quality and operational efficiency across various business areas[32]. - The company utilizes a proprietary technology called "Hummingbird" for online processing of loan applications, which includes credit assessments and fraud detection[154]. - The company reassesses the creditworthiness of existing customers monthly using a behavioral scoring model, tracking overdue payment rates[154]. Corporate Governance - The board of directors is committed to adopting good corporate governance practices and procedures to manage the company and operate its business[115]. - The company has adopted the corporate governance code as per the listing rules and has complied with applicable code provisions during the year[116]. - The board meets at least four times a year to review the group's operational, financial, and business performance, including interim and annual financial results[121]. - The board has established a diversity policy that considers various perspectives, including gender, age, and professional experience when selecting director candidates[140]. - The company provides indemnification for directors and senior officers for liabilities incurred in the performance of their duties, except in cases of negligence or fraud[132]. Employee and Talent Management - The company is focused on optimizing its talent strategy, aiming to build a highly efficient team with professional capabilities and innovative spirit[12]. - The overall gender ratio of the group's employees, including senior management, is 51% male and 49% female as of December 31, 2024[145]. - The company has established various share incentive plans to provide equity-based incentives and rewards for eligible individuals[190]. - As of December 31, 2024, the company has a total of 870 employees, focusing on attracting and retaining talent to maintain business development capabilities[190]. Environmental and Social Responsibility - The group reported a significant reduction in gasoline consumption by 35.07% compared to 2023, with total greenhouse gas emissions amounting to 1,044.39 tons of CO2 equivalent for the year[173]. - The company made charitable donations amounting to RMB 2.13 million in the current year, compared to RMB 0.08 million in 2023[184]. - The company has identified risks and opportunities related to climate change and is enhancing its greenhouse gas emissions accounting and management[173]. - The company provided services to small and micro enterprises 1,051,162 times in 2024, emphasizing its commitment to supporting this sector[174].

Financial Performance - Total revenue for the year ended December 31, 2024, reached RMB 3,929.7 million, a 10.1% increase from RMB 3,569.5 million in 2023[4] - Interest and similar income rose to RMB 1,968.2 million, marking a significant increase of 33.2% compared to RMB 1,477.3 million in the previous year[4] - The operating profit for the year was RMB 636.2 million, a 5.2% increase from RMB 604.8 million in 2023[4] - Net profit rose by 5.3% to RMB 478.2 million from RMB 453.9 million in the same period last year, consistent with the increase in operating profit[40] - Total revenue increased by 10.1% to RMB 3,929.7 million from RMB 3,569.5 million in the same period last year, driven by higher average outstanding loan balances and increased contributions from other income sources[24] - Net interest and similar income rose by 33.2% to RMB 1,968.2 million, compared to RMB 1,477.3 million last year, primarily due to an increase in average outstanding loan balances[26] - Operating profit increased by 5.2% to RMB 636.2 million from RMB 604.8 million in the previous year, supported by effective control of operating expenses despite a contraction in loan realization[39] - Basic earnings per share for the year were RMB 0.98, compared to RMB 0.93 in the previous year, indicating an increase of about 5.4%[69] User and Borrower Metrics - The number of registered users reached 158 million, representing a year-on-year growth of 9.7%[10] - The proportion of repeat borrowers accounted for 85.9% of the total loan volume in 2024, indicating strong customer retention[10] - The total number of borrowers reached 11.1 million as of December 31, 2024[14] Loan and Credit Management - The company achieved a loan volume of RMB 55.75 billion in mainland China, reflecting adjustments in operational strategies to mitigate credit risks[7] - The total loan realization for the company in 2024 was RMB 55,753.3 million, a decrease from RMB 75,248.2 million in 2023, with a significant contribution from trust loans at 21.0%[16] - The average loan size for consumer credit products was approximately RMB 10,555, with an average loan term of about 10.0 months[14] - The first payment overdue rate for Q4 2024 was stable at 0.58%, a decrease of 18.3% compared to Q4 2023[17] - The overdue rates for one to three months and over three months decreased to 3.39% and 3.02% respectively in Q4 2024, reflecting improved risk management[18] - The company reported a significant decrease in credit enhancement loan realizations, down 30.2% to RMB 35,354.5 million for the year[50] Strategic Initiatives and Partnerships - The company has established long-term partnerships with 110 external funding partners, enhancing its financing capabilities[11] - The introduction of the AI model "Jinwu" has improved customer service quality and operational efficiency across various business areas[8] - The company is focusing on expanding its user base and enhancing user experience through optimized operational strategies and advanced algorithm models[9] - In 2024, the company launched the online consumer finance brand "CreFIT" in Hong Kong, becoming the first loan company to partner with China Mobile Hong Kong, providing financial products to MyLink platform customers[12] - The company aims to deepen long-term partnerships with licensed financial institutions and other business partners to enhance service offerings and brand loyalty[22] Financial Position and Cash Flow - Cash and cash equivalents increased by RMB 794.8 million, reaching RMB 1,693.4 million as of December 31, 2024, compared to RMB 896.7 million at the beginning of the year[58] - Operating cash inflow for the year was RMB 1,463.1 million, compared to an outflow of RMB 1,344.9 million in the previous year, primarily due to reduced cash outflows from loan realizations[59] - Total borrowings and payables decreased by 5.2% to RMB 5,274.0 million as of December 31, 2024, from RMB 5,561.9 million as of December 31, 2023[55] - The total assets decreased to RMB 11,706.4 million from RMB 11,934.5 million, a decline of approximately 1.9%[70] Expenses and Investments - Research and development expenses remained stable at RMB 125.5 million, slightly down from RMB 125.9 million, reflecting ongoing investment in technological capabilities and innovation[38] - Sales and marketing expenses increased by 14.4% to RMB 61.1 million from RMB 53.4 million, driven by business expansion efforts into different regions[36] - General and administrative expenses rose by 10.6% to RMB 372.4 million from RMB 336.8 million, primarily due to increased employee benefits expenses[37] - The company will continue to assess potential investment opportunities and make appropriate acquisition decisions as opportunities arise[20] Dividends and Shareholder Information - The company plans to pay a final dividend of HKD 0.20 per share, pending approval at the upcoming annual general meeting[4] - The company proposed a final dividend of HKD 0.20 per share for the year, compared to HKD 0.10 per share in 2023, pending shareholder approval[110] Compliance and Governance - The board believes the company has adopted and complied with the corporate governance code principles as outlined in Appendix C1 of the listing rules during the year[119] - An audit committee has been established in accordance with the listing rules to review and supervise the group's financial reporting procedures[121] - The audit committee, along with senior management and external auditors, reviewed the annual financial statements[122]

Loan Performance - The loan realization amount for the first half of 2024 reached RMB 27.02 billion, a decrease of 25.3% compared to RMB 36.19 billion for the same period in 2023[5]. - The outstanding loan balance as of June 30, 2024, was RMB 26.61 billion, down 22.8% from RMB 34.47 billion as of December 31, 2023[5]. - The first payment overdue rate for newly realized loans decreased by 29.6% to 0.50% in Q2 2024 compared to Q4 2023[5]. - The three-month overdue rate increased to 3.82% by the end of Q2 2024 due to adverse macroeconomic conditions[5]. - The total loan amount facilitated through the loan matching model reached RMB 20.24 billion, accounting for 74.9% of the total loan realization[5]. - The company reported a significant decrease in credit enhancement loan realizations, which fell by 36.2% to RMB 15,915.7 million for the six months ended June 30, 2024, compared to RMB 24,955.3 million in the same period of 2023[40]. - New loans generated from loan facilitation business amounted to RMB 1,196,504 thousand for the period ending June 30, 2024, compared to RMB 1,674,123 thousand for the same period in 2023, indicating a decrease of approximately 28.5%[129]. User Growth and Engagement - Cumulative registered users increased to 149.1 million, representing a growth of 9.8% compared to the same period last year[5]. - The proportion of repeat borrowers accounted for 89.5% of the total loan amount during the period[5]. Financial Performance - Total revenue for the period was RMB 1,738.4 million, a decrease of 9.3% compared to RMB 1,917.6 million in the same period last year[7]. - Net profit and adjusted net profit were RMB 120.3 million and RMB 120.7 million, respectively, representing a decrease of 60.2% compared to RMB 302.1 million and RMB 303.5 million in the same period last year[8]. - Operating profit decreased by 60.4% to RMB 154.4 million from RMB 389.5 million, attributed to reduced loan realization volume and increased overdue rates[30]. - Total expenses, including realized and service costs, were RMB 625,954,000, down from RMB 807,664,000 in the previous year[73]. - The company reported a mid-term profit of RMB 120,343,000, down 60% from RMB 302,113,000 in the previous year[73]. Operational Efficiency and Technology - The company expanded its AI applications to customer service and post-loan management, significantly improving coding efficiency by over 100% in several projects[6]. - The introduction of the AI model "Jinwu" aims to enhance operational efficiency and improve customer service quality[10]. - The company implemented strategic adjustments to optimize post-loan collection processes and customer complaint management systems[9]. Risk Management and Regulatory Environment - The company continues to focus on risk management and operational efficiency to achieve high-quality growth amid macroeconomic uncertainties[9]. - The new regulatory framework for consumer finance companies may pose short-term challenges but is expected to strengthen the industry in the long run[9]. - The company plans to enhance risk control systems and innovate collection processes to balance business objectives with customer experience[14]. Cash Flow and Investments - The net cash inflow from operating activities for the six months ended June 30, 2024, was RMB 469.6 million, a decrease of RMB 109.0 million compared to RMB 578.6 million in the same period last year[47]. - The company made significant investments in Thousand Whales Technology (BVI) Limited, acquiring a 15.0% stake for a total of HKD 16.0 million[52]. - The company reported a net cash inflow from financial investments of RMB 35,468 thousand, compared to RMB 63,369 thousand in the previous year[29]. Shareholder and Equity Information - The total number of issued shares of the company is 489,459,789 shares[59]. - The company has granted a total of 9,020,360 shares as rewards under the first share incentive plan, with 1,800,000 shares granted to related parties[61]. - The company declared dividends amounting to RMB 44,672 thousand during the period[77]. Economic Outlook - The Consumer Price Index (CPI) baseline scenario is projected at 0.84%, with an upward scenario at 1.47% and a downward scenario at 0.51%[89]. - The Gross Domestic Product (GDP) baseline scenario is projected at 5.11%, with an upward scenario at 5.33% and a downward scenario at 5.00%[89].

Revenue and Profit Performance - Total revenue for the first half of 2024 was RMB 1,738.4 million, a decrease of 9.3% compared to the same period in 2023[1] - Net profit for the first half of 2024 was RMB 120.3 million, a decrease of 60.2% compared to the same period in 2023[1] - The company's total revenue for the first half of 2024 decreased by 9.3% year-over-year to RMB 1,738.4 million, primarily due to reduced loan facilitation under credit-enhanced and pure loan facilitation models[12] - Operating profit declined by 60.4% to RMB 154.4 million, impacted by reduced loan volumes, cautious strategies in uncertain macroeconomic conditions, and increased overdue rates[25] - Net profit decreased by 60.2% to RMB 120.3 million, consistent with the decline in operating profit[26] - Total revenue for the first half of 2024 decreased to RMB 1,738,357 thousand, down 9.3% from RMB 1,917,607 thousand in the same period of 2023[46] - Operating profit for the first half of 2024 declined to RMB 154,417 thousand, down 60.3% from RMB 389,497 thousand in the same period of 2023[46] - Profit attributable to owners of the company for the first half of 2024 was RMB 120,343 thousand, down 60.2% from RMB 302,113 thousand in the same period of 2023[46] - Basic earnings per share for the first half of 2024 were RMB 0.25, down 59.7% from RMB 0.62 in the same period of 2023[47] - Basic earnings per share (EPS) for the first half of 2024 were RMB 0.25, down from RMB 0.62 in the same period of 2023, with diluted EPS also at RMB 0.25[63] Interest Income and Expenses - Interest income increased by 38.0% to RMB 1,068.3 million in the first half of 2024[1] - Net interest income increased by 38.0% to RMB 1,068.3 million, driven by higher average outstanding loan balances under the trust loan model[14] - Interest expenses rose by 10.0% to RMB 193.3 million due to increased average borrowing balances, partially offset by a decrease in the weighted average interest rate[14] - Net interest income for the first half of 2024 increased to RMB 874,986 thousand, up 46.2% from RMB 598,541 thousand in the same period of 2023[46] - Net interest income increased to RMB 874,986 thousand in the first half of 2024, up from RMB 598,541 thousand in the same period of 2023[56] Loan Facilitation and Customer Metrics - Loan facilitation service fees decreased by 15.0% to RMB 939.6 million in the first half of 2024[1] - The company's loan realization volume reached RMB 27.02 billion in the first half of 2024[4] - Repeat loan customers accounted for 89.5% of total loan volume in the first half of 2024[5] - Cumulative registered users reached 149.1 million by June 2024, a 9.8% increase compared to the same period in 2023[5] - The company's total loan facilitation volume for the first half of 2024 was RMB 27,023.1 million, with credit-enhanced loan facilitation accounting for 58.9% of the total[8] - The outstanding loan balance for online consumer products as of June 30, 2024, was RMB 26,602.9 million[6] - The average loan size for credit products during the period was approximately RMB 11,936, with an average loan term of 10.1 months[6] - The top five borrowers accounted for only 0.003% of the total loan balance as of June 30, 2024, with the largest borrower representing 0.001%[6] - Loan facilitation service fees decreased to RMB 939,624 thousand in the first half of 2024, compared to RMB 1,105,334 thousand in the first half of 2023[57] - New loan facilitation business generated an increase of RMB 1,196,504 thousand in guarantee receivables for the first half of 2024, compared to RMB 1,674,123 thousand in the same period of 2023[73] Delinquency and Risk Management - The first payment delinquency rate in Q2 2024 decreased by 29.6% compared to Q4 2023, dropping to 0.50%[7] - The delinquency rate for loans overdue by more than three months increased to 3.82% in Q2 2024, up from 2.98% in Q4 2023[9] - The delinquency rate for loans overdue by one to three months was 4.47% in Q2 2024, showing a slight improvement from 4.62% in Q1 2024[9] - The company will continue to optimize its credit solutions and enhance risk management capabilities through AI technology[11] - Credit impairment losses amounted to RMB 144,149 thousand in the first half of 2024, slightly lower than RMB 148,258 thousand in the same period of 2023[60] Business Expansion and Partnerships - The company has established long-term partnerships with 109 external funding partners as of June 2024[5] - The company launched the AI model "Golden Crow Model" in the first half of 2024, enhancing operational efficiency and customer service quality[4] - The company expanded its consumer finance business in Hong Kong through its brand "CreFIT" and partnered with China Mobile Hong Kong in May 2024[5] - The company plans to expand its business by seeking investment, cooperation, or acquisition opportunities in Hong Kong, Southeast Asia, and Europe[11] - The company acquired a 15.0% stake in Thousand Whales Technology (BVI) Limited through two transactions totaling HKD 16.0 million in 2024[44] Expenses and Cost Management - Other expenses of RMB 76.2 million were recorded, compared to other income of RMB 213.7 million in the same period last year, mainly due to increased overdue rates and guarantee losses[19] - Realization and service expenses decreased by 22.5% to RMB 626.0 million, reflecting lower customer acquisition costs due to reduced scale, partially offset by increased loan collection fees[21] - Sales and marketing expenses increased by 12.3% to RMB 24.1 million, driven by higher employee benefits and brand expenses for new business development[22] - General and administrative expenses decreased by 3.0% to RMB 162.2 million, attributed to improved operational efficiency[23] - Research and development expenses decreased by 1.9% to RMB 57.0 million, as the company streamlined processes and improved efficiency through continued investment in technology[24] - Total expenses, including realization and service expenses, sales and marketing expenses, general and administrative expenses, and R&D expenses, decreased to RMB 869,173 thousand in the first half of 2024 from RMB 1,054,345 thousand in the first half of 2023[59] Financial Position and Cash Flow - The fair value of customer loans measured at fair value through profit or loss increased by 2.0% from RMB 6,504.4 million as of December 31, 2023, to RMB 6,637.1 million as of June 30, 2024, primarily due to an increase in trust model loan disbursements[32] - Contract assets decreased by 18.0% from RMB 465.4 million as of December 31, 2023, to RMB 381.5 million as of June 30, 2024, mainly due to a 37.4% decrease in credit-enhanced and pure matching model loan disbursements[34] - Guarantee receivables decreased by 24.2% from RMB 1,317.0 million as of December 31, 2023, to RMB 998.7 million as of June 30, 2024, while guarantee liabilities decreased by 33.3% from RMB 1,533.9 million to RMB 1,023.6 million over the same period[34] - The total amount due to trust plan holders increased by 3.1% from RMB 4,999.1 million as of December 31, 2023, to RMB 5,151.8 million as of June 30, 2024, driven by increased loan disbursements through the trust loan model[36] - The company's cash and cash equivalents increased by RMB 494.2 million to RMB 1,390.6 million as of June 30, 2024, compared to RMB 896.7 million as of December 31, 2023[40] - Net cash inflow from operating activities decreased by RMB 109.0 million to RMB 469.6 million for the six months ended June 30, 2024, compared to RMB 578.6 million for the same period in 2023[40] - Net cash inflow from financing activities was RMB 11.1 million for the six months ended June 30, 2024, compared to a net cash outflow of RMB 959.4 million for the same period in 2023[41] - Cash and cash equivalents as of June 30, 2024, increased to RMB 1,390,228 thousand, up 55.1% from RMB 896,534 thousand as of December 31, 2023[49] - Total assets as of June 30, 2024, were RMB 11,741,462 thousand, down 1.6% from RMB 11,934,463 thousand as of December 31, 2023[49] - Total liabilities as of June 30, 2024, were RMB 7,498,234 thousand, down 3.4% from RMB 7,765,873 thousand as of December 31, 2023[49] - Cash and bank balances increased to RMB 1,390,228 thousand as of June 30, 2024, up from RMB 896,534 thousand as of December 31, 2023, driven by a significant increase in bank cash to RMB 1,378,720 thousand[66] - Contract assets decreased to RMB 381,500 thousand as of June 30, 2024, from RMB 465,408 thousand as of December 31, 2023, after accounting for expected credit loss provisions[70] - Guarantee receivables decreased to RMB 998,698 thousand as of June 30, 2024, from RMB 1,317,024 thousand as of December 31, 2023, with expected credit loss provisions of RMB 171,937 thousand[72] - Guarantee liabilities decreased to RMB 1,023,571 thousand as of June 30, 2024, from RMB 1,533,883 thousand as of December 31, 2023, with new loan facilitation business contributing RMB 1,196,504 thousand[74] - Total borrowings increased to RMB 5,691,001 thousand as of June 30, 2024, compared to RMB 5,471,888 thousand as of December 31, 2023[76] - The asset-liability ratio decreased to 63.9% as of June 30, 2024, from 65.1% as of December 31, 2023, a reduction of 1.2%[78] - The consolidated debt-to-equity ratio improved to 1.6x as of June 30, 2024, compared to 1.7x as of December 31, 2023[78] - The remaining funding for consolidated trust plans was RMB 5.62 billion as of June 30, 2024, up from RMB 5.49 billion as of December 31, 2023[79] - The company had RMB 357.9 million in cash deposits pledged as collateral for bank loans as of June 30, 2024[42] - The weighted average interest rate for borrowings and preferred notes decreased to 6.6% for trust plan holder payables as of June 30, 2024, from 8.3% as of December 31, 2023[38] - Borrowings due within 1 year increased to RMB 2,657,941 thousand as of June 30, 2024, from RMB 2,339,608 thousand as of December 31, 2023[76] - Borrowings due within 1 to 2 years decreased to RMB 3,033,060 thousand as of June 30, 2024, from RMB 3,132,280 thousand as of December 31, 2023[76] - The interest rate range for trust plan payables was 4.90%~9.00% as of June 30, 2024, down from 5.00%~10.50% as of December 31, 2023[76] Other Financial Metrics - Other income/(expenses) showed a loss of RMB 76,253 thousand in the first half of 2024, compared to a gain of RMB 213,732 thousand in the same period of 2023[58] - Other net income increased to RMB 21,686 thousand in the first half of 2024, up from RMB 7,943 thousand in the first half of 2023[60] - Income tax expense decreased to RMB 32,198 thousand in the first half of 2024, compared to RMB 85,859 thousand in the same period of 2023, with deferred tax increasing to RMB 133,555 thousand from RMB 95,412 thousand[62] - The company adopted new and revised standards effective from January 1, 2024, with no significant impact on its financial position or performance[53] - The company expects to adopt new and revised standards in the future, with no significant impact anticipated on its financial position or performance[54] Corporate Governance and Shareholder Information - The company's registered office is located at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands[50] - The company's shares have been listed on the Hong Kong Stock Exchange since June 21, 2018, with 489,459,789 shares issued as of June 30, 2024[50] - The company did not recommend an interim dividend for the period ending June 30, 2024, compared to an interim dividend of 15 HK cents per share for the same period in 2023[81][85] - The company had 843 employees as of June 30, 2024[86] - The company currently has no plans for other significant investments or capital assets[45] - The company has sufficient resources to meet foreseeable working capital needs, considering available borrowing facilities and internal resources[84]