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].