Financial Performance - In 2023, the company issued approximately 68,987 retail auto loans, with a total loan amount of RMB 4.697 billion, representing a significant increase of 4,550% compared to the previous year[8]. - The company's net interest income for 2023 reached RMB 216 million, an increase of 43% from 2022[8]. - Total operating revenue for 2023 was approximately RMB 304 million, reflecting an increase of about 87% year-on-year[8]. - The number of active loan customers increased to approximately 74,300 by the end of 2023, up from 14,600 at the end of 2022, marking a growth of 408%[10]. - Retail loan balance as of December 31, 2023, was approximately RMB 4.52 billion, a 622% increase from RMB 630 million in 2022[10]. - The company recorded a net profit of approximately RMB 56 million for the year ended December 31, 2023, indicating a return to profitability after a slight loss in the previous year[9]. - The company provided financial consulting services related to auto financing, generating approximately RMB 81 million in revenue for 2023[10]. - Interest income rose by 48% to approximately RMB 223 million in 2023, driven by an increase in auto loan disbursements[15]. - Net commission income surged by 416% to approximately RMB 88 million in 2023, primarily due to financial consulting services related to vehicle financing[18]. - Operating expenses totaled approximately RMB 202 million in 2023, a 74% increase from RMB 116 million in 2022, attributed to higher personnel costs and business expenses[19]. - The company recorded a net profit of approximately RMB 56 million in 2023, down from RMB 135 million in 2022, mainly due to significant impairment loss reversals in the previous year[22]. - The company’s total loans and advances net amount was approximately RMB 4.42 billion as of December 31, 2023, compared to RMB 554.94 million in 2022[26]. - The company’s total equity as of December 31, 2023, amounted to RMB 2,139,651,400, divided into 2,139,651,400 shares with a par value of RMB 1 each[50]. - The company reported a pre-tax profit of RMB 58,389 thousand for 2023, down from RMB 578,071 thousand in 2022, a decline of 89.9%[126]. - The total profit and comprehensive income for the year was RMB 56,188 thousand, compared to RMB 135,097 thousand in the previous year, a decrease of 58.3%[126]. - Basic and diluted earnings per share for 2023 were RMB 0.0263, down from RMB 0.0631 in 2022, reflecting a decline of 58.3%[126]. Loan and Credit Management - The company has established a comprehensive credit risk management system to mitigate potential risks in the loan issuance process[11]. - Impairment losses recognized under the expected credit loss model amounted to approximately RMB 42.76 million in 2023, compared to a reversal of RMB 531.71 million in 2022[20]. - The expected credit loss provision for loans and advances was RMB 1,271,184 thousand as of December 31, 2023, with a net loan balance of RMB 4,418,011 thousand[172]. - The company has implemented a new expected credit loss model in accordance with Hong Kong Financial Reporting Standards, categorizing loans into three stages based on credit risk[120]. - The company assesses expected credit losses for financial assets based on historical experience and forward-looking information, updating the expected credit loss amount at each reporting date[163]. - The expected credit loss model includes both lifetime expected credit losses and 12-month expected credit losses, depending on the credit risk changes since initial recognition[164]. - The company evaluates whether credit risk has significantly increased since initial recognition by comparing the default risk at the reporting date to that at initial recognition[164]. - The company regularly reviews the grouping of loans to ensure similar credit risk characteristics are maintained[167]. Corporate Governance and Management - The company has a strong governance structure with independent directors like Mr. Huang Wenzong and Ms. Liang Yanjun, who bring over 30 years and extensive legal experience respectively[43][44]. - The company is focused on risk management, with a dedicated committee and experienced members overseeing financial and operational risks[40][45]. - The management team has a diverse educational background, including degrees from prestigious institutions such as Shanghai Jiao Tong University and the University of Munich[39][42]. - The company aims to enhance its market position through strategic appointments and experienced leadership in finance and legal sectors[40][42]. - The company is committed to maintaining high standards of corporate governance and risk management practices[43][45]. - The board consists of seven members, including one executive director and three independent non-executive directors, ensuring a diverse range of experience and expertise[84]. - The company has adopted a board diversity policy, with the current board comprising three female directors and four male directors, reflecting a commitment to gender balance[89]. - The company has established mechanisms for independent professional advice for board members, ensuring compliance with applicable laws and regulations[87]. - The company provides ongoing training and updates to directors regarding legal and regulatory developments to assist them in fulfilling their duties[90]. - The company held a total of 5 board meetings during the year ending December 31, 2023, to review and approve annual and interim performance[93]. - The remuneration committee conducted 2 meetings to review the company's remuneration policies and assess the performance of executive directors and senior management[96]. - The audit committee, comprising 4 members, is responsible for overseeing the company's financial reporting and compliance[99]. - The company has established four committees: remuneration, nomination, audit, and risk management, to monitor specific aspects of its affairs[94]. Regulatory Compliance and Risk Management - The company has complied with all provisions of the corporate governance code during the year ended December 31, 2023[76]. - The supervisory board confirmed that the company's operations and decisions were in compliance with relevant laws and regulations during the reporting period[81]. - The board is responsible for maintaining a robust risk management and internal control system to protect shareholder investments and company assets[107]. - The company aims to become a leading automotive finance company in China, focusing on long-term goals without compromising on appropriate risk management[103]. - The board confirmed the effectiveness and adequacy of the company's risk management and internal control systems for the year ending December 31, 2023[107]. - The company has established an internal audit function to assist the board in monitoring risk management and internal control systems[107]. - The company emphasizes the importance of maintaining effective communication with shareholders and investors, utilizing various reports and a dedicated website for transparency[108]. Future Outlook and Strategic Plans - The company plans to expand its retail loan assets in the new energy vehicle and used car segments in 2024, focusing on enhancing dealer coverage and optimizing service models[37]. - The company aims to maintain a leading asset bad debt ratio while improving the competitiveness of its used car products, targeting it as a core profit growth point over the next three years[37]. Related Party Transactions and Shareholder Information - The company has not recorded any significant related party transactions with SAIC Group or its affiliates during the reporting period[67]. - The company has entered into a framework agreement with SAIC Group for automotive loan services, effective from January 1, 2023, to December 31, 2024, with an annual cap of RMB 100 million and actual service fees of RMB 0 for the year[68]. - The financial consulting services agreement with SAIC Group, also effective from January 1, 2023, to December 31, 2024, has an annual cap of RMB 200 million, with actual fees amounting to RMB 81 million for the year[70]. - The company confirms the independence of all independent non-executive directors as per the listing rules[62]. - The company has not disclosed any significant matters requiring disclosure after December 31, 2023, up to the date of this report[76].

Financial Performance - The net interest income for the year ended December 31, 2023, was RMB 215,950 thousand, an increase of 43.4% from RMB 150,558 thousand in 2022[2] - The total operating income for 2023 was RMB 303,583 thousand, compared to RMB 162,681 thousand in 2022, reflecting an increase of 86.5%[2] - The net fee and commission income rose significantly to RMB 87,906 thousand in 2023, up from RMB 17,025 thousand in 2022, marking an increase of 416.5%[2] - The company reported a total profit for the year of RMB 56,188 thousand, down 58.3% from RMB 135,097 thousand in 2022[2] - The basic and diluted earnings per share for 2023 were RMB 0.0263, a decrease from RMB 0.0631 in 2022[2] - The company reported a weighted average incremental borrowing rate for lease liabilities ranging from 2.84% to 2.91% in 2023, down from 4.00% to 6.80% in 2022[20] - The company recorded net profit of approximately RMB 56 million for the year ended December 31, 2023, indicating a return to normalized operations[32] - The company's operating expenses for the year ended December 31, 2023, totaled approximately RMB 202 million, a 74% increase from RMB 116 million in 2022, primarily due to increased personnel costs and business expenses related to higher business volume[39] Assets and Liabilities - The total assets as of December 31, 2023, amounted to RMB 4,936,206 thousand, a 42.3% increase from RMB 3,472,326 thousand in 2022[3] - The total liabilities increased to RMB 1,520,454 thousand in 2023, compared to RMB 112,762 thousand in 2022, indicating a substantial rise[3] - The company’s net asset value as of December 31, 2023, was RMB 3,415,752 thousand, slightly up from RMB 3,359,564 thousand in 2022[3] - As of December 31, 2023, the company's loans and advances to customers amounted to approximately RMB 4.42 billion, a significant increase of 622% from RMB 550 million in 2022[45] - The total liabilities of the company were reported at RMB 1,520,454,000 as of December 31, 2023[26] Loan and Credit Management - Total loans and advances issued amounted to RMB 5,665,946 thousand in 2023, significantly up from RMB 1,767,538 thousand in 2022, marking an increase of approximately 220.5%[15] - The net amount of loans and advances after impairment losses was RMB 4,418,011 thousand in 2023, compared to RMB 554,939 thousand in 2022, indicating a substantial increase of around 694.5%[15] - The total overdue loans amounted to RMB 1,269,959 thousand as of December 31, 2023, compared to RMB 1,209,915 thousand in 2022, reflecting an increase of about 4.9%[16] - The provision coverage ratio for expected credit losses reached 99.92% in the third stage as of December 31, 2023, indicating a high level of provisioning for potential loan defaults[17] - The expected credit loss model recorded a reversal of impairment losses of RMB (42,760) thousand in 2023, compared to a significant loss of RMB 531,714 thousand in 2022[2] - The expected credit loss model indicated a 100% provision rate for all outstanding dealer loans as of December 31, 2023, reflecting a complete impairment[28] - The company has established a comprehensive credit risk management system to mitigate potential risks in the loan issuance process[34] Retail Business Performance - The company provided retail loans to automotive end customers totaling RMB 4,524,696 thousand in 2023, a significant increase from RMB 626,288 thousand in 2022[15] - The net interest income from retail business reached RMB 180,401,000, while the total net income from fees and commissions was RMB 87,906,000, resulting in a total profit of RMB 226,720,000 for the retail segment[25] - The total assets of the company as of December 31, 2023, amounted to RMB 4,936,206,000, with retail business assets contributing RMB 4,422,695,000[26] - In 2023, the company issued approximately 69,000 retail auto loans with a total disbursement amount of RMB 4.7 billion, representing a year-on-year increase of 4,550%[31] - Retail loan balance reached RMB 4.52 billion by December 31, 2023, a 622% increase from RMB 630 million in 2022[32] - Retail loans totaled approximately RMB 4.52 billion as of December 31, 2023, compared to RMB 626 million in 2022, while dealer loans remained stable at approximately RMB 1.14 billion[46] Corporate Governance and Operations - The company has implemented new accounting standards that did not have a significant impact on the financial statements for the current and prior years[4] - The company has adopted a corporate governance code to ensure shareholder rights and enhance corporate value and accountability[56] - The audit committee has reviewed the financial statements for the year ending December 31, 2023, confirming compliance with applicable accounting standards[57] - There were no significant acquisitions or disposals of major assets during the year ended December 31, 2023[52] - The company did not purchase, sell, or redeem any of its listed securities during the year ending December 31, 2023[57] - The company’s H shares have been suspended from trading since October 7, 2022, and will remain suspended until further notice[61] Future Plans and Strategy - The company plans to expand its automotive retail loan assets in the new energy and used car sectors in 2024, focusing on enhancing dealer coverage and optimizing service models[54] - The company aims to maintain a leading asset bad debt ratio while improving the competitiveness of its used car products, which will be a core profit growth point over the next three years[55] - The company will further explore cooperation with more original equipment manufacturers (OEMs) in the commercial vehicle sector to enhance sales through quality financial services[55] - The board of directors does not recommend the distribution of a final dividend for the year ending December 31, 2023, consistent with the previous year[55] Employee and Operational Metrics - As of December 31, 2023, the company had a total of 248 employees, with approximately 99.6% holding a bachelor's degree or higher, and about 22.1% possessing a master's degree or above[53] - The total number of active loan customers increased to approximately 74,300 by the end of 2023, up from 14,600 at the end of 2022[32] - The company expanded its dealer network to over 500 partners across more than 300 cities in China by the end of 2023[31]

Financial Performance - In the first half of 2023, the company recorded a net profit of approximately RMB 18 million, a significant turnaround from a net loss of RMB 260 million in the same period of 2022[9]. - The company's total operating revenue for the first half of 2023 was approximately RMB 134 million, reflecting a growth of about 57% year-on-year[9]. - The company achieved a net income from fees and commissions of approximately RMB 49 million during the first half of 2023, driven by its auto finance business[9]. - Interest income increased by 7% to approximately RMB 86 million for the six months ended June 30, 2023, compared to RMB 80 million for the same period in 2022[14]. - Net commission and fee income rose significantly by 360% to approximately RMB 49 million for the six months ended June 30, 2023, driven by financial consulting services related to vehicle financing[17]. - The company recorded a net profit of approximately RMB 18 million for the six months ended June 30, 2023, a decrease from RMB 305 million in the same period of 2022, mainly due to significant impairment loss reversals in the prior year[21]. - The company’s net profit attributable to ordinary equity shareholders for the six months ended June 30, 2023, was RMB 17,584,000, a decrease of 94.2% from RMB 305,302,000 in the same period of 2022[71]. - The total profit before tax for the company was RMB 29,527 thousand for the six months ended June 30, 2023[100]. Loan and Customer Growth - The retail auto loan business saw a substantial increase, with the number of loans issued reaching approximately 24,586, representing a year-on-year increase of 9,580%, and the loan amount totaling RMB 1.73 billion, up 2,652% compared to 2022[10]. - As of June 30, 2023, the number of active loan customers increased to approximately 34,700, compared to 14,600 at the end of 2022[10]. - Retail loan total increased by 228% to approximately RMB 2.05 billion as of June 30, 2023, compared to RMB 630 million at the end of 2022[24]. - The net amount of loans and advances to customers reached approximately RMB 1.95 billion as of June 30, 2023, up from RMB 554 million at the end of 2022[25]. - The total amount of loans and advances issued as of June 30, 2023, reached RMB 3,195,772,000, representing a 80.6% increase from RMB 1,767,538,000 at the end of 2022[73]. - The company’s retail loans amounted to RMB 2,054,522,000 as of June 30, 2023, a significant increase from RMB 626,288,000 at the end of 2022[73]. Risk Management and Credit Losses - The company has established a comprehensive credit risk management system to identify, assess, and mitigate potential risks in the loan issuance process[11]. - The company’s expected credit loss model recorded impairment losses of approximately RMB 30 million for the six months ended June 30, 2023, compared to a reversal of RMB 450 million in the same period of 2022[19]. - The impairment loss recognized under the expected credit loss model for loans and advances was RMB 29,608,000, a recovery from an impairment loss of RMB 452,074,000 in the previous year[67]. - The expected credit loss provision rate for Stage 1 loans was 4.51%, while for Stage 2 loans it was 24.47% as of June 30, 2023[82]. Operational and Expense Management - Operating expenses totaled approximately RMB 74 million for the six months ended June 30, 2023, a 43% increase from RMB 52 million for the same period in 2022, primarily due to increased personnel costs and business expenses[18]. - The total employee cost for the six months ended June 30, 2023, was approximately RMB 51 million, compared to RMB 25 million for the same period in 2022[33]. - Total salary and other allowances for the six months ended June 30, 2023, amounted to RMB 45,796,000, a significant increase of 102.3% compared to RMB 22,595,000 for the same period in 2022[66]. Shareholder and Capital Structure - As of June 30, 2023, major shareholder SAIC Motor Corporation holds 1,520,000,000 non-listed foreign shares, representing 100% of that category and 71.04% of total issued ordinary shares[40]. - The company’s capital adequacy ratio decreased from 191.50% on December 31, 2022, to 131.55% on June 30, 2023[28]. - The core tier 1 capital adequacy ratio was 130.63% as of June 30, 2023, down from 191.03% at the end of 2022[29]. - The liquidity ratio dropped significantly from 5,293.40% to 1,247.28% during the same period[29]. - The company has no significant acquisitions or disposals of assets during the six months ended June 30, 2023[30]. Future Outlook and Strategic Initiatives - The company plans to continue expanding its loan offerings and enhancing its service capabilities in the automotive finance sector[9]. - The company plans to enhance retail loan asset scale and strengthen cooperation with channel service providers and direct dealers in the second half of 2023[35]. - The company aims to optimize financing structure and reduce funding costs while ensuring current business volume and loan asset scale[35]. - The company has provided a positive outlook for the second half of 2023, projecting a revenue growth of 20%[104]. - New product launches are expected to contribute an additional 10% to overall revenue in the upcoming quarters[105]. - The company is considering strategic acquisitions to enhance its service offerings, with a target of completing at least one acquisition by Q4 2023[104]. Miscellaneous - The board does not recommend the distribution of an interim dividend for the six months ended June 30, 2023[36]. - The company has not disclosed any significant events that occurred after June 30, 2023, up to the report date[44]. - The company’s financial statements were reviewed in accordance with Hong Kong accounting standards, with no significant issues noted[48].

Financial Performance - Interest income for the six months ended June 30, 2023, was RMB 85,948 thousand, an increase of 7.5% from RMB 80,302 thousand in the same period of 2022[2] - Net commission income rose significantly to RMB 48,618 thousand, compared to RMB 10,562 thousand in the prior year, reflecting a growth of 359.5%[2] - Total operating income for the period was RMB 133,648 thousand, up from RMB 85,360 thousand in the previous year, representing a year-on-year increase of 56.5%[2] - The company reported a profit for the period of RMB 17,584 thousand, a decrease of 94.2% from RMB 305,302 thousand in the same period last year[2] - Basic and diluted earnings per share decreased to RMB 0.0082 from RMB 0.1427, indicating a decline of 94.2%[2] - The company achieved a total operating revenue of approximately RMB 134 million in the first half of 2023, an increase of about 57% compared to the same period in 2022[32] - The net profit for the first half of 2023 was approximately RMB 18 million, a significant turnaround from a net loss of RMB 260 million in the same period of 2022[31] - The company recorded a pre-tax profit of approximately RMB 30 million for the first half of 2023[32] - The company recorded an impairment loss of approximately RMB 0.3 million for the first half of 2023, compared to a reversal of impairment loss of approximately RMB 450 million in the same period of 2022[40] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 3,529,652 thousand, an increase from RMB 3,472,326 thousand at the end of 2022, reflecting a growth of 1.65%[3] - Total liabilities increased to RMB 152,504 thousand from RMB 112,762 thousand, marking a rise of 35.3%[3] - The company’s net asset value as of June 30, 2023, was RMB 3,377,148 thousand, slightly up from RMB 3,359,564 thousand at the end of 2022[3] - The company's total assets as of June 30, 2023, amounted to approximately RMB 3.53 billion[29] - The company’s total liabilities were approximately RMB 152.5 million as of June 30, 2023[29] Loans and Advances - The total amount of loans and advances issued as of June 30, 2023, was RMB 3,195,772 thousand, an increase from RMB 1,767,538 thousand as of December 31, 2022[16] - The net amount of loans and advances as of June 30, 2023, was RMB 1,953,752 thousand, compared to RMB 554,939 thousand as of December 31, 2022, indicating a substantial growth[16] - The company provided retail loans totaling RMB 2,054,522 thousand and dealer loans of RMB 1,141,250 thousand as of June 30, 2023[16] - The overdue loans as of June 30, 2023, totaled RMB 1,174,379 thousand, with RMB 33,129 thousand overdue for less than three months[19] - The provision rate for loans classified under the expected credit loss model was 1.29% for Stage 1, 32.91% for Stage 2, and 99.98% for Stage 3 as of June 30, 2023[23] - As of June 30, 2023, customer loans and advances net amount was approximately RMB 19.5 billion, a significant increase of 255% from RMB 5.5 billion as of December 31, 2022[45] - Retail loan total amount reached approximately RMB 20.5 billion, up 228% from RMB 6.3 billion at the end of 2022[45] - The company has suspended its dealer loan business since 2021, with no new loans issued in the first half of 2023, maintaining a loan balance of RMB 1.14 billion[32] Capital and Equity - The company's total issued share capital remained at 2,139,651 thousand shares as of June 30, 2023, consistent with the previous period[25] - No dividends were declared or paid to the company's equity shareholders for the six months ended June 30, 2023[25] - The company's capital adequacy ratio decreased from 191.50% on December 31, 2022, to 131.55% on June 30, 2023[52] - The core tier 1 capital adequacy ratio was 130.63% as of June 30, 2023, down from 191.03% at the end of 2022[53] Operational Highlights - The company plans to continue expanding its financial services and exploring new market opportunities in the automotive finance sector[1] - The company plans to enhance the scale of automotive retail loan assets in the second half of 2023, focusing on strengthening cooperation with channel service providers and direct dealers[55] - The company aims to optimize retail financial products to improve market competitiveness and comply with regulatory requirements[55] - The company has established a comprehensive credit risk management system to identify, assess, measure, monitor, mitigate, and control risks during the loan issuance process[34] - For the first half of 2023, the company recorded retail auto loan disbursements of approximately 24,586 transactions, representing a year-on-year increase of 9,580%[32] - The total amount of retail auto loans disbursed reached approximately RMB 1.73 billion, reflecting a year-on-year growth of 2,652%[32] - The net income from fees and commissions was approximately RMB 49 million in the first half of 2023[32] Governance and Compliance - The company has applied new accounting standards effective from January 1, 2023, which did not have a significant impact on the financial statements[6] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ending June 30, 2023[59] - The interim financial report for the six months ending June 30, 2023, will be published on the company's website and the Hong Kong Stock Exchange website[60] - The company expresses gratitude to its management, employees, shareholders, and business partners for their support and contributions[61] - The company is committed to adhering to applicable accounting standards in preparing its financial statements[59] - The board of directors includes a mix of executive and non-executive members, ensuring diverse governance[64] - The company operates under the corporate governance code as outlined in the listing rules[63] - The financial report is expected to fairly present the company's financial position and performance during the review period[59] - The company has not disclosed specific financial metrics or performance indicators in the provided documents[64] - The company will send the interim report to shareholders in due course[60] Employee Costs - The total employee cost for the six months ending June 30, 2023, was approximately RMB 51 million, compared to RMB 25 million for the same period in 2022[54] Trading Suspension - The company has suspended trading of its H shares since October 7, 2022, and will continue to do so until further notice[62]

Financial Performance - The company's operating revenue for 2022 was RMB 1.63 billion, down 49% year-on-year[9]. - The net interest income for 2022 was RMB 1.51 billion, a decrease of 46% compared to the previous year[9]. - The company recorded a net profit of RMB 1.35 billion in 2022, compared to a net loss of RMB 840 million in 2021, primarily due to the recovery of overdue payments exceeding RMB 1.7 billion[9]. - The company reported a profit before tax of RMB 578,071,000 for 2022, compared to a loss of RMB 1,120,122,000 in 2021, indicating a significant turnaround[119]. - The net profit for 2022 was RMB 135,097,000, recovering from a loss of RMB 840,093,000 in 2021[119]. - Basic earnings per share for 2022 were RMB 0.0631, compared to a loss per share of RMB 0.3926 in 2021[119]. - The total income tax expense for 2022 was RMB (442,974) thousand, compared to RMB 280,029 thousand in 2021, reflecting a significant increase in tax expenses[164]. - The company reported a total of RMB 9,467 thousand in receivable financing lease amounts as of December 31, 2022, down from RMB 13,211 thousand in 2021[192]. Loan and Advances - As of December 31, 2022, the total amount of customer loans and advances decreased by 57% to RMB 1.77 billion from RMB 4.10 billion in 2021[9]. - The number of retail loans issued in 2022 was 413, a decline of 95% from 2021, with a total loan amount of RMB 1.01 billion, down 76% year-on-year[10]. - The company suspended its dealer loan business in 2022, resulting in no loans issued for the year, with the loan balance as of December 31, 2022, at RMB 1.14 billion, a decrease of approximately 56% from the end of 2021[10]. - Total retail loan disbursement amounted to RMB 101 million for the year ended December 31, 2022, a significant decrease of 76% from RMB 427 million in 2021[11]. - The company issued loans and advances totaling RMB 2,338,596,000, an increase from RMB 2,065,293,000 in 2021[123]. - Retail loans amounted to RMB 626,288 thousand in 2022, down from RMB 1,516,458 thousand in 2021, indicating a decrease of about 58.7%[178]. - The total amount of loans and advances issued decreased to RMB 1,767,538 thousand in 2022 from RMB 4,097,752 thousand in 2021, reflecting a decline of approximately 57.5%[178]. Credit Risk Management - The company has established a comprehensive credit risk management system to identify, assess, and mitigate risks associated with loan issuance[12]. - The company has optimized risk policies and enhanced risk monitoring capabilities, including the use of statistical principles and machine learning algorithms[14]. - The company’s expected credit loss model identified a decrease in impairment loss provisions due to the recovery of overdue amounts exceeding RMB 1.7 billion from customers in 2022[20]. - The expected credit loss model showed a significant reversal in impairment losses, with total impairment losses decreasing from RMB 1,316,448 thousand in 2021 to RMB (531,714) thousand in 2022, indicating a positive change of approximately 140.4%[162]. - The company recognized a total of RMB 465,429 thousand in impairment loss reversals during the year, indicating a positive trend in credit quality[189]. - The aging analysis of accounts receivable showed no outstanding commercial notes as of December 31, 2022, compared to RMB 175,548 thousand in 2021 after accounting for impairment losses[198]. Operational Strategy - The company maintained zero external funding needs in 2022, focusing on risk management and loan quality improvement[8]. - The company adopted a cautious lending strategy due to the economic environment and credit risks, leading to a significant reduction in loan issuance[9]. - In 2023, the company aims to enhance the scale of automotive retail loan assets, focusing on partnerships with channel service providers and direct sales dealers[36]. - The company plans to restart cooperation with domestic financial institutions to secure bank credit, thereby strengthening its financial capacity to support business growth[36]. - The company is focusing on expanding its new energy vehicle financing business in 2023[36]. Corporate Governance - The company has established a robust governance structure with independent directors overseeing key committees, ensuring compliance and strategic oversight[41]. - The board consists of seven members, including one executive director and three independent non-executive directors[78]. - The company emphasizes the importance of good corporate governance for its success and sustainability[76]. - The supervisory board will continue to enhance its oversight functions and ensure compliance with relevant laws and regulations in 2023[75]. - The company has adopted a standard code for securities trading by directors and supervisors, confirming compliance for the year ending December 31, 2022[77]. Financial Position - The company's liquidity ratio was 5,293.40% as of December 31, 2022, compared to 2,143.02% in 2021, indicating a strong liquidity position[29]. - The capital adequacy ratio increased significantly to 191.50% as of December 31, 2022, up from 68.37% in 2021[28]. - The company's total assets as of December 31, 2022, were RMB 3,472,326,000, an increase from RMB 3,375,771,000 in 2021[120]. - Total liabilities decreased to RMB 112,762,000 in 2022 from RMB 151,304,000 in 2021, a reduction of 25.5%[120]. - The company's equity increased to RMB 3,359,564,000 in 2022 from RMB 3,224,467,000 in 2021, reflecting a growth of 4.2%[120]. Employee and Management - As of December 31, 2022, the company had a total employee cost of approximately RMB 55 million, a decrease from RMB 63 million in 2021[13]. - The company has 152 employees, with about 97% holding a bachelor's degree or higher, and approximately 22% holding a master's degree or higher[13]. - The company appointed new senior management in February 2023, including a Chief Human Resources Officer and a Chief Information Officer, to enhance operational efficiency[45][44]. - The total remuneration for the five highest-paid individuals in 2022 was RMB 4,035 thousand, down from RMB 5,191 thousand in 2021, a decrease of about 22.3%[172]. Compliance and Reporting - The independent auditor's report confirms that the financial statements reflect the company's financial position as of December 31, 2022, in accordance with Hong Kong Financial Reporting Standards[110]. - The company has complied with the disclosure requirements under the Hong Kong Companies Ordinance[111]. - The company secretary has fulfilled the training requirements as per the listing rules in 2022[105]. - The company’s articles of association remained unchanged in 2022, with a proposed amendment regarding the registered address pending approval from the China Banking and Insurance Regulatory Commission[108].

Financial Performance - For the year ended December 31, 2022, the company reported a net interest income of RMB 150,558 thousand, a decrease of 46.3% from RMB 280,319 thousand in 2021[2] - The total operating income for 2022 was RMB 162,681 thousand, down from RMB 316,120 thousand in 2021, reflecting a decline of 48.6%[2] - The company achieved a profit before tax of RMB 578,071 thousand, compared to a loss before tax of RMB 1,120,122 thousand in 2021, indicating a significant turnaround[2] - The net profit for the year was RMB 135,097 thousand, recovering from a loss of RMB 840,093 thousand in the previous year[2] - Basic and diluted earnings per share for 2022 were RMB 0.0631, compared to a loss per share of RMB 0.3926 in 2021[2] - The company recorded a net profit of RMB 135 million in 2022, compared to a net loss of RMB 840 million in 2021, primarily due to the recovery of overdue payments exceeding RMB 1.7 billion[31] - The company achieved a net profit of approximately RMB 135 million for the year ended December 31, 2022, compared to a net loss of approximately RMB 840 million in 2021[45] Assets and Liabilities - Total assets increased to RMB 3,472,326 thousand in 2022, up from RMB 3,375,771 thousand in 2021, representing a growth of 2.9%[3] - The company's total liabilities decreased to RMB 112,762 thousand in 2022 from RMB 151,304 thousand in 2021, a reduction of 25.5%[3] - The net asset value rose to RMB 3,359,564 thousand in 2022, compared to RMB 3,224,467 thousand in 2021, reflecting an increase of 4.2%[3] - The company's total liabilities amounted to RMB 112,762 thousand as of December 31, 2021[27] - As of December 31, 2022, the company's loans and advances to customers net amount was approximately RMB 550 million, a decrease from RMB 2.44 billion in 2021[46] Loan and Credit Management - Total loans and advances issued in 2022 amounted to RMB 1,767,538 thousand, down from RMB 4,097,752 thousand in 2021, indicating a decrease of approximately 56.8%[13] - Net loans and advances after impairment losses for 2022 were RMB 554,939 thousand, a decline of 77.3% compared to RMB 2,439,894 thousand in 2021[13] - The provision for impairment losses in 2022 was RMB 1,214,051 thousand, down from RMB 1,662,084 thousand in 2021, reflecting a reduction of 27%[13] - The total overdue loans as of December 31, 2022, amounted to RMB 1,209,915 thousand, compared to RMB 2,657,062 thousand in 2021, showing a decrease of 54.5%[16] - The company provided retail loans to end customers totaling RMB 626,288 thousand in 2022, down from RMB 1,516,458 thousand in 2021[13] - The company has established a credit risk management system to identify, assess, and mitigate risks associated with loan issuance[33] Operational Highlights - The company plans to continue focusing on enhancing its financial services and expanding its market presence in the automotive finance sector[1] - The company’s retail business is focused on providing automotive retail loans, loan facilitation services, and direct leasing services[25] - The company maintained zero external funding needs in 2022, reflecting a cautious lending strategy amid a volatile credit environment[30] - The company plans to enhance its automotive retail loan asset scale in 2023, focusing on partnerships with channel service providers and direct dealers[55] - The company aims to restart collaborations with domestic financial institutions to secure bank credit and strengthen its funding capabilities[55] Financial Ratios and Coverage - The provision coverage ratio for Stage 3 loans was 99.98% in 2022, indicating a high level of coverage for impaired loans[17] - The company's capital adequacy ratio increased significantly from 68.37% as of December 31, 2021, to 191.50% as of December 31, 2022[51] - The liquidity ratio rose to 5,293.40% from 2,143.02% year-over-year, indicating a strong liquidity position[52] Other Financial Information - The company had no dividends declared or paid to equity shareholders for the years ended December 31, 2022, and 2021[22] - The board of directors does not recommend the distribution of a final dividend for the year ended December 31, 2022[56] - The company has no significant contingent liabilities as of December 31, 2022[55] - The company has suspended trading of its H shares since October 7, 2022, until further notice[61] - Deloitte has verified the financial statements for the year ending December 31, 2022, but did not provide any assurance or conclusion on the preliminary announcement[59]

Financial Performance - In the first half of 2022, the company issued loans amounting to RMB 0.63 billion, a decrease of 76% compared to RMB 2.61 billion in the same period last year[17]. - The company's net interest income for the first half of 2022 was RMB 0.8 billion, a decline of 51% from the same period in 2021[18]. - The company recorded a net profit of RMB 0.305 billion in the first half of 2022, compared to a net loss of RMB 0.26 billion in the same period last year[18]. - Net interest income for the six months ended June 30, 2022, was approximately RMB 80 million, a 51% decrease from RMB 164 million for the same period in 2021[29]. - Operating income decreased to RMB 85,360 thousand, compared to RMB 184,325 thousand in the prior year, representing a decline of 53.7%[75]. - The net profit for the period was RMB 305,302 thousand, a significant recovery from a loss of RMB 259,727 thousand in the previous year[75]. - The company reported a profit before tax of RMB 485,176 thousand, compared to a loss of RMB 346,388 thousand in the same period last year[75]. - The company recorded a total tax expense of RMB 179,874 thousand for the six months ended June 30, 2022, significantly lower than RMB 34,732 thousand for the same period in 2021[102]. Loan and Credit Management - The total loan balance as of June 30, 2022, was RMB 2.23 billion, down 8.5% from RMB 2.44 billion at the end of 2021[18]. - The number of retail loan customers as of June 30, 2022, was 21,745, with a total of 254 retail loans issued, a 95% decrease from 5,170 loans in the same period last year[19]. - The total amount of retail loans issued in the first half of 2022 was RMB 0.63 billion, down 76% from RMB 2.61 billion in the previous year[20]. - The company has established a comprehensive credit risk management system to identify, assess, and mitigate risks associated with loan issuance[21]. - The company is focusing on optimizing risk policies and control strategies to better manage the risk of newly issued loans[23]. - The company’s credit risk assessment framework categorizes financial assets into five risk levels, including "Good," "Doubtful," and "Non-repayable," to manage expected credit losses effectively[181]. - The company’s credit risk management includes pre-loan investigations, approval processes, and post-loan monitoring to ensure effective risk control[178]. Asset and Liability Management - As of June 30, 2022, the company's non-performing loan balance was RMB 1.21 billion, with a non-performing loan ratio of 34.50%, up from 29.49% as of December 31, 2021[24]. - The loan provision coverage ratio decreased to 106.43% as of June 30, 2022, compared to 137.54% as of December 31, 2021[24]. - The company’s total liabilities decreased to RMB 105,746 thousand from RMB 151,304 thousand, a reduction of 30.2%[76]. - The total risk-weighted assets decreased to RMB 4,041,932 thousand as of June 30, 2022, from RMB 4,582,039 thousand as of December 31, 2021, indicating a reduction in risk exposure[166]. - The total capital base increased to RMB 3,561,242 thousand as of June 30, 2022, compared to RMB 3,132,776 thousand as of December 31, 2021, reflecting a growth in the overall capital structure[166]. Regulatory Compliance and Governance - The company issued a fine of RMB 2 million and was ordered to suspend its dealer auto loan business due to regulatory violations[25]. - The company plans to implement a series of rectifications in response to regulatory requirements following the administrative decision from the Shanghai Banking and Insurance Regulatory Commission[25]. - The company has faced compliance issues with listing rules but has received extensions and has since met the requirements[65]. - The audit committee reviewed the unaudited interim financial report for the six months ended June 30, 2022, ensuring compliance with applicable accounting standards[70]. Operational Efficiency - Operating expenses totaled approximately RMB 52 million for the six months ended June 30, 2022, a decrease of 6.4% from RMB 55 million in the same period of 2021, attributed to a decline in business volume[37]. - The company reported total employee costs of approximately RMB 25 million for the six months ended June 30, 2022, down from RMB 30 million for the same period in 2021[53]. - The company has not disclosed any significant events that occurred after June 30, 2022, up to the report date[68]. Future Outlook and Strategic Initiatives - The automotive sales data began to recover significantly from June 2022, supported by national policies promoting automotive consumption[55]. - The company plans to increase credit investments and strengthen partnerships with automotive brands in the second half of 2022[55]. - SAIC Group officially became the controlling shareholder on August 4, 2022, which is expected to enhance the company's financing capabilities and operational management[55]. Cash and Liquidity Management - As of June 30, 2022, cash and deposits with the central bank amounted to approximately RMB 0.5 million, unchanged from December 31, 2021[41]. - Deposits with other financial institutions increased by 328% to approximately RMB 1.09 billion as of June 30, 2022, compared to approximately RMB 260 million at December 31, 2021, mainly due to loan repayments from customers[42]. - The total cash and cash equivalents increased to RMB 1,092,618 thousand as of June 30, 2022, up from RMB 255,574 thousand as of December 31, 2021, reflecting a substantial growth in liquidity[168]. - The company aims to maintain sufficient cash and cash equivalents to meet liquidity needs, monitoring liquidity risk regularly[199].

Financial Performance - The company recorded a net loss of RMB 840 million in 2021, compared to a net profit of RMB 55 million in 2020[9]. - The company's net interest income for 2021 was RMB 280 million, a decline of 43% from the previous year[9]. - The total operating income for 2021 was RMB 316,120 thousand, down 45.2% from RMB 577,171 thousand in 2020[120]. - The company reported a pre-tax loss of RMB 1,120,122 thousand for 2021, compared to a profit of RMB 73,971 thousand in 2020, indicating a significant decline in performance[123]. - The company reported a significant increase in impairment losses, totaling RMB 1,316,448 thousand in 2021, compared to RMB 381,400 thousand in 2020[120]. - The company recognized impairment losses of approximately RMB 1.32 billion in 2021, significantly higher than RMB 380 million in 2020[26]. - The company’s total interest expenses decreased to RMB 63,499 thousand in 2021 from RMB 248,209 thousand in 2020, reflecting a decline of 74.5%[157]. - The company recorded a loss attributable to ordinary equity shareholders of RMB 840,093,000 in 2021, compared to a profit of RMB 54,985,000 in 2020, resulting in a basic and diluted loss per share of RMB (0.3926)[173]. Loan and Advances - In 2021, the company issued retail loans amounting to RMB 957 million, an increase of 87% compared to RMB 512 million in 2020[8]. - The total loans and advances issued amounted to RMB 4,097.8 million in 2021, a decrease of 33.3% from RMB 6,144.4 million in 2020[32]. - The net amount of loans and advances was approximately RMB 2,439.9 million as of December 31, 2021, down 57.6% from RMB 5,751.3 million at the end of 2020[31]. - The company’s retail loans totaled approximately RMB 1.52 billion in 2021, a decrease of 57.4% from RMB 3.56 billion in 2020[32]. - The company has suspended its dealer loan business, resulting in no dealer loans issued in 2021, while the loan balance remained stable at RMB 2.581 billion[10]. - The company’s non-performing loan balance as of December 31, 2021, was RMB 1.208 billion, up from RMB 22 million in 2020, resulting in a non-performing loan ratio of 29.49% compared to 0.36% in 2020[14][15]. Risk Management - The company has established a comprehensive credit risk management system to identify, assess, and mitigate risks throughout the loan issuance process[12]. - The company has strengthened technology investments to enhance risk control capabilities in response to increased overdue loans[8]. - The company employs an expected credit loss model to calculate loss provisions, categorizing loans and advances into three different stages based on credit risk[111]. - The assessment of significant increase in credit risk includes monitoring all financial assets to determine if credit risk has significantly increased since initial recognition[141]. - The company recognizes loss allowances for expected credit losses on financial assets, including cash, loans, and receivables[138]. Corporate Governance - The company has complied with all applicable corporate governance code provisions for the year ended December 31, 2021[79]. - The independent auditor, KPMG, confirmed that there were no significant issues regarding related party transactions for the year ended December 31, 2021[76]. - The company has established a code of conduct for securities trading by directors and supervisors, which has been adhered to during the year[85]. - The company has arranged appropriate liability insurance for directors and senior officers for potential losses incurred while performing their duties[77]. - The company has established a nomination committee to oversee the board's structure, size, and diversity, ensuring effective succession planning[89]. Operational Adjustments - The company has implemented measures to optimize costs and monitor customer repayments in response to the adverse business environment caused by the COVID-19 pandemic[10]. - The company plans to continue monitoring the development of the COVID-19 pandemic and take appropriate cost and risk management measures during difficult times[10]. - The company plans to enhance its market penetration by deepening cooperation with main engine manufacturers and exploring financing opportunities in the new energy vehicle sector[40]. - The company plans to continue focusing on cost management and operational efficiency to improve future financial performance[170]. Shareholder and Investment Information - The company aims to complete the equity clearance of its controlling shareholder to prepare for future business development[7]. - The company did not recommend the distribution of a final dividend for the year ended December 31, 2021, consistent with the previous year[50]. - The company has not declared any interim dividends in 2021, similar to 2020[50]. - The company plans to fully utilize the unutilized net proceeds by December 31, 2022[54]. - The company has allocated RMB 889.83 million for retail loan funding to external customers, with no amount utilized as of December 31, 2021[54]. Financial Position - The company's total assets decreased to RMB 3,375,771 thousand as of December 31, 2021, down 46.1% from RMB 6,268,762 thousand in 2020[121]. - Total liabilities dropped to RMB 151,304 thousand in 2021 from RMB 2,204,202 thousand in 2020, a decrease of 93.1%[121]. - The company's net equity as of December 31, 2021, was RMB 3,224,467 thousand, down 20.7% from RMB 4,064,560 thousand in 2020[121]. - The company’s capital adequacy ratio increased to 68.37% as of December 31, 2021, up from 59.37% at the end of 2020[34]. - The liquidity ratio surged to 2,143.02% as of December 31, 2021, compared to 88.58% in 2020[35]. Employee and Operational Costs - The total employee cost for the year 2021 was approximately RMB 63 million, a decrease from RMB 70 million in 2020[39]. - The company employed 174 staff members as of December 31, 2021, with about 96% holding a bachelor's degree or higher, and 20% holding a master's degree or higher[39]. - The total remuneration for the five highest-paid individuals was RMB 5,191,000 in 2021, a decrease from RMB 5,383,000 in 2020[171]. - Employee costs totaled RMB 62,744 thousand in 2021, a decrease of 10.1% from RMB 69,850 thousand in 2020[160].