执业证书编号：S0740517090005 Email：jiangqiao@zts.com.cn 分析师：葛玉翔 | Email：geyx01@zts.com.cn | | --- | | 基本状况 | | | --- | --- | | 总股本(百万股) | 6,757.68 | | 流通股本(百万股) | 6,757.68 | | 市价(港元) | 2.22 | | 市值(百万港元) | 15,002.05 | | 流通市值(百万港 | 15,002.05 | | 元) | | 汽车服务 | | | 1、《易鑫集团深度报告：专业汽车金 融交易平台，稳健业绩驱动长期股东 回报》2025-04-03 易鑫集团 25Q1 点评：高利润二手车业务增长超预期，金科业务高 增 易鑫集团（02858.HK） 证券研究报告/公司点评报告 2025 年 05 月 15 日 | 评级： | 买入（维持） | 公司盈利预测及估值 | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | 指标 | 2023A | 2024A | 2025E | 202 ...

机构：方正证券 研究员：许旖珊 事件：易鑫集团披露2025 年一季度业务更新及运营资料。 39.9%/yoy+15.6pct；25 年公司进一步扩大汽车金融产业链合作伙伴规模，一季度有4 个新合作项目上 线、且公司持续深化与国有大行（如工行）合作。 投资分析意见：公司作为第三方汽车金融领军，一方面高股息特色鲜明，24 年派息0.13 港币、分红率 超100%，对应25/5/14 股息率6%；另一方面公司对未来成长信心充足、25 年业绩有望延续高增长态 势，给予"强烈推荐"评级。预计2025-2027E 公司归母净利润分别为10.9、13.0、14.9亿元，同比+34%、 +20%、+14%；25-27E 动态PE 为12.1x、10.1x、8.8x。 风险提示：业务拓展不及预期；宏观经济波动；行业监管政策变化。 总量看：1Q 易鑫集团总融资额略有承压，预计二手车行业销量增速放缓&单均融资额下降为主因。 1Q25 易鑫集团业务保持上升势头，公司合计实现汽车融资交易量17.2 万笔/yoy+0.5%（1Q25 我国新车 及二手车总销量yoy+7.5%），融资总额达153 亿元/yoy-5.0%；公司总融资额略下滑 ...

Core Viewpoint - 易鑫集团 is an AI-driven fintech platform focused on providing accessible and convenient automotive financing and value-added services, with a strong emphasis on technological innovation and partnerships within the automotive finance industry [2] Group 1: Company Overview - 易鑫集团 was established in August 2014 and went public on the Hong Kong Stock Exchange in 2017 [2] - The company operates in over 340 cities in China and has formed partnerships with more than 80 AI and internet companies, over 100 automotive manufacturers, and more than 100 financial institutions, as well as over 39,000 dealerships [2] - The company has served over 10 million customers, with a cumulative transaction volume exceeding 4.4 million units and a total transaction scale surpassing 400 billion yuan [2] Group 2: Technological Innovation - 易鑫集团 has invested over 2 billion yuan in research and development [2] - In 2024, the company will become the first in China's automotive finance sector to register a generative AI model [2] - By 2025, 易鑫 will be the first in the industry to achieve localized deployment and application of the DeepSeek model, and will officially release and open-source the high-performance inference model YiXin-Distill-Qwen-72B [2] Group 3: Future Outlook - The establishment of an overseas headquarters in Singapore marks a step towards global expansion for 易鑫集团 [2] - The company aims to enhance its technological capabilities to better serve the global automotive finance industry and to create an ecosystem that facilitates vehicle ownership [2]

Investment Rating - The report gives a "Buy" rating for the company, with a target price of HKD 2.20, while the closing price is HKD 1.63 [4][6]. Core Insights - The company focuses on the automotive finance sector, with a dual business model of platform and self-operated financing, achieving significant revenue growth in 2024 [2][4]. - In 2024, the company reported a revenue of HKD 9.888 billion, a year-on-year increase of 47.9%, with platform business revenue at HKD 7.894 billion (up 54.9%) and self-operated financing revenue at HKD 1.991 billion (up 25.4%) [2][4]. - The company has seen a structural change in its platform business, with significant growth in the used car segment, which outpaced new car sales [3][55]. Summary by Sections Business Overview - The company was established in 2014 and listed in Hong Kong in 2017, with Tencent as the largest shareholder [2][16]. - It utilizes 4S store channels for customer acquisition and implements differentiated pricing based on customer profiles [2]. Financial Performance - The company achieved a net profit of HKD 810 million in 2024, a 45.9% increase year-on-year [5][17]. - The gross profit margin for the overall business was 46.9%, with the platform business margin at 46.7% [17][36]. Market Position - The company has increased its market share in the used car financing sector, with a market share of 1.78% in 2024, up 0.26 percentage points year-on-year [46][54]. - The new energy vehicle segment has also seen a rise in market share, reaching 1.36% in 2024, an increase of 0.14 percentage points [46][54]. Business Strategy - The company is expanding its customer base by targeting long-tail customers and focusing on localization and electrification trends in the automotive market [57]. - The SaaS business has become a new growth driver, providing technology solutions and enhancing connections between financial and industrial institutions [61]. Future Projections - Revenue projections for 2025-2027 are estimated at HKD 12.209 billion, HKD 14.702 billion, and HKD 17.159 billion, respectively, with corresponding profit estimates of HKD 1.081 billion, HKD 1.213 billion, and HKD 1.415 billion [4][5].

Summary of 易鑫集团 Conference Call Company Overview - 易鑫集团, a subsidiary of 易车网, was established in 2014 and listed on the Hong Kong Stock Exchange in 2017, focusing on automotive finance, including self-operated financing and trading platform business [3][4] Key Points Industry Insights - The used car market has shown strong growth with a compound annual growth rate (CAGR) of 12.5% from 2014 to 2024, while the retail transaction volume of used cars is only 38%, indicating significant growth potential compared to developed countries [4][6] - The new car market has experienced a slowdown since 2018, with negative growth observed [6] Financial Performance - In 2024, 易鑫集团's revenue reached 9.88 billion, a year-on-year increase of 48%, and net profit was 810 million, up 46% [4][8] - The gross margin decreased from 56% in 2022 to 47% in 2024 due to rising costs [4][8] - The average funding cost for self-operated financing decreased from 5.3% in 2022 to 4.5% in 2024, indicating potential for further reduction [4][11] Business Strategy - The company is transitioning towards a light asset model, with non-guaranteed lending (SRS type) revenue reaching 1.8 billion in 2024, a 289% increase [4][9] - A differentiated competition strategy and precise pricing led to a 25.45% increase in used car transaction volume in 2024, significantly outperforming the industry average growth rate of 7% [4][7] Competitive Advantages - 易鑫集团 has a vast direct sales network covering 340 cities and over 38,000 car dealers, which helps mitigate fraud risks [4][11] - The application of AI technology in traditional business scenarios has resulted in significant operational efficiencies, including avoiding potential fraud losses exceeding 300 million RMB in 2024 [4][11] Shareholder Structure - The largest shareholder is Tencent, holding approximately 52% of the shares, followed by 曾俊奇 with 10.29% and CEO 张学安 [5] Future Outlook - Projections indicate net profits of 1.13 billion, 5.32 billion, and 5.564 billion for 2025 to 2027, with growth rates of 17% and 18% [12] - The target price based on a 10x PE valuation is set at 1.82 RMB, with risks associated with platform business performance and potential increases in non-performing loans [13] Growth Potential - Continued high growth in revenue and profit is expected, driven by strong demand in the used car market and the company's established presence in this sector [14]

Financial Performance - In 2024, the company achieved a revenue of RMB 9.9 billion, representing a 48% year-on-year growth, and adjusted net profit exceeded RMB 1 billion, up 19% year-on-year[9]. - Adjusted operating profit for the year ended December 31, 2024, was RMB 1.44 billion, an increase of 32% from RMB 1.09 billion in 2023, primarily due to revenue growth[44]. - Adjusted net profit for the year ended December 31, 2024, was RMB 1.08 billion, up 19% from RMB 910 million in 2023, also driven by revenue growth[45]. - Total revenue for the year ended December 31, 2024, reached RMB 9.89 billion, a 48% increase from RMB 6.69 billion in 2023[48]. - Operating profit for the year was RMB 1.13 billion, a 64% increase from RMB 689 million in 2023[48]. - The company reported a net profit of RMB 809 million for the year, representing a 46% increase from RMB 555 million in 2023[48]. Financing and Transactions - The company processed 726,000 financing transactions in 2024, a 7% increase year-on-year, with total financing amounting to RMB 69.1 billion, up 5% year-on-year[11]. - The company’s financing transactions for new energy vehicles totaled 175,000 units in 2024, marking a 51% year-on-year growth[11]. - The total financing transactions for the company amounted to 726,000 cases, a 7% increase from 678,000 cases in the previous year[30]. - The total financing amount for the company was RMB 69.14 billion, up 5% from RMB 65.95 billion year-on-year[30]. - Financing transactions for new energy vehicles increased by 51% year-on-year, with 175,000 transactions totaling RMB 17.92 billion[30]. Market Trends - Retail sales of new energy vehicles (NEVs) in China grew by 41% year-on-year in 2024, with NEVs accounting for over 50% of new car retail sales for several months[8]. - In 2024, the retail sales of new energy vehicles in China reached 10.9 million units, representing a year-on-year growth of 40.7%[21]. - The penetration rate of new energy vehicles has consistently exceeded 50% for several months, indicating strong market acceptance[21]. - In 2024, the retail sales of passenger cars in China increased by 6% year-on-year, driven by a rebound in the second half of the year[7]. - The total sales of new passenger cars in China reached 27.6 million units in 2024, reflecting a year-on-year increase of 5.8%[19]. Fintech Growth - The fintech business of the company achieved strong growth in 2024, with fintech revenue soaring to RMB 1.8 billion, a year-on-year increase of 290%[13]. - The financing transaction amount facilitated by the company's fintech platform exceeded RMB 20 billion, representing a year-on-year growth of 107%[13]. - The fintech platform facilitated a total financing amount of RMB 21.1 billion in 2024, showing significant year-on-year growth, while fintech revenue reached RMB 1.8 billion, up 290%[35]. - The average revenue per core customer increased by 132% to RMB 1.04 million in 2024, compared to RMB 447,270 in 2023, with 98% of fintech revenue coming from core customers[36]. - The company plans to continue prioritizing the fintech sector in 2025, aiming to provide precise automotive financial analysis services to a broader range of financial institutions[13]. Risk Management - The company has established a comprehensive risk management and internal control system to address credit risk, which is the primary risk faced[96]. - The company implemented a data-driven credit assessment system to manage credit risk, focusing on consumers' ability and willingness to fulfill financial obligations[96]. - The company actively monitors overdue rates and continuously improves data analysis capabilities to manage credit risk effectively[96]. - The company’s credit assessment process includes automated preliminary assessments and manual evaluations, utilizing over 40 models to analyze various data points[99]. - The overdue rate for financing transactions was 1.39% for over 180 days and 1.86% for over 90 days, showing slight improvements from 1.49% and 1.89% respectively in the previous year[87]. Corporate Governance - The company has a strong governance structure with independent directors serving on various committees, enhancing oversight and accountability[143]. - The management team includes professionals with backgrounds in international financial institutions, contributing to the company's strategic direction[142]. - The board is committed to maintaining compliance with listing rules and regulations, ensuring transparency and good corporate governance practices[153]. - The company has a management team with extensive experience in finance and operations, including Mr. Gao and Mr. Song, who oversee automotive financing[147]. - The board proposed a final dividend of HKD 0.065 per share, representing approximately 50.1% of the earnings per share during the reporting period[16]. Investments and Capital Structure - The company invested RMB 2.578 billion in Yusheng as of December 31, 2024, representing 5.3% of the total assets[122]. - The company achieved a significant milestone by issuing its first offshore bond of JPY 4 billion with a 3-year term in December 2024, enhancing its international business expansion[107]. - As of December 31, 2024, total borrowings amounted to RMB 26.9 billion, an increase from RMB 23.2 billion as of December 31, 2023[172]. - The debt-to-asset ratio rose to 55% as of December 31, 2024, compared to 53% as of December 31, 2023, due to an increase in net debt[114]. - The company’s asset management scale reached RMB 108.1 billion by December 31, 2024, with a 90-day overdue rate improving to 1.86%[11]. Research and Development - Research and development expenses rose by 20% year-on-year to RMB 233 million, mainly due to increased salaries and professional service fees[71]. - The Titan-AI cloud platform was upgraded in 2024, enhancing operational efficiency and supporting sustainable growth through AI applications in fraud prevention and customer service[13]. - The company developed the first multimodal large model in the automotive sector, "ZhiXin Multi-Dimensional," marking a significant milestone in 2024[39]. - The AI applications have been widely implemented across various business scenarios, completing over 82 million calls and saving approximately 70 man-months of work per month[39]. Shareholder Information - Proposed final and special dividends of HKD 0.065 per share, totaling approximately HKD 878.5 million (approximately RMB 810.9 million), compared to HKD 195.7 million in the previous year[80]. - The company has implemented various share incentive plans, including the 2024 Share Plan, which was approved on June 27, 2024[179]. - The total number of share options that can be granted under the pre-IPO share option plan is capped at 418,464,263 shares[183]. - As of December 31, 2024, there are 235,100,848 share options granted to eligible participants that remain unexercised under the pre-IPO share option plan[184]. - The exercise price for the share options is set at $0.0014 per share, as determined by the committee[191].

Yixin Group Limited (02858) H2 2024 Earnings Call February 27, 2025 06:00 AM ET Moderator Good evening. Welcome to the Yifeng Group twenty twenty four Annual Results Conference, an annual performance conference, which will be conducted through the live audio and the teleconference. Please allow me to introduce the company's management team who attended this annual performance conference as follows Mr. Zhang Qiu An, Chairman and Chief Executive Officer Mr. Gouchi Co President Mr. Yang Xiaohuang, Chief Financ ...

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 9,887.73 million, representing a 48% increase compared to RMB 6,685.97 million in 2023[5]. - The company's adjusted net profit reached RMB 1,078.80 million, a 19% increase from RMB 910.05 million in the previous year[5]. - The gross profit for the year was RMB 4.64 billion, a 43% increase from RMB 3.25 billion in 2023, with a gross margin of 47% in 2024 compared to 49% in 2023[54]. - The adjusted operating profit for 2024 was RMB 1.44 billion, compared to RMB 1.09 billion in 2023, primarily driven by revenue growth[40]. - The annual profit attributable to the company's owners was RMB 809,938,000, up from RMB 554,958,000 in 2023, reflecting an increase of approximately 46.0%[120]. - The company reported a net profit margin of approximately 8.2% for 2024, compared to 8.3% in 2023[120]. - The operating profit rose 64% to RMB 1.13 billion, with adjusted operating profit increasing by 32% to RMB 1.44 billion[44]. - The total expenses for the year ended December 31, 2024, amounted to RMB 8,799,286 thousand, compared to RMB 6,042,277 thousand in 2023, reflecting a growth of 46.0%[184]. Financing and Transactions - The total number of financing transactions processed was 726,000, reflecting a 7% growth from 678,000 in 2023[6]. - The financing amount increased to RMB 69.1 billion, marking a 5% rise year-on-year[12]. - Financing transactions facilitated by the company's fintech platform exceeded RMB 20 billion, representing a 107% year-on-year growth[14]. - The company processed 175,000 financing transactions in the new energy vehicle sector, a substantial 51% increase year-on-year[12]. - New car financing transactions decreased by 6% to 376,000, with financing amounting to RMB 38.698 billion, down 4% from RMB 40.205 billion in 2023[27]. - Used car financing transactions increased by 25% to 350,000, with financing amounting to RMB 30.445 billion, up 18% from RMB 25.744 billion in 2023[27]. - Financing for new energy vehicles (NEVs) surged by 51% to 175,000 transactions, with a total financing amount of RMB 17.922 billion, compared to RMB 12.405 billion in 2023[27]. SaaS and Fintech Growth - The company achieved a significant 290% growth in SaaS service revenue, reaching RMB 1,803.84 million compared to RMB 462.68 million in 2023[5]. - The fintech business of the company achieved strong growth in 2024, with revenue soaring to RMB 1.8 billion, a year-on-year increase of 290%[14]. - The average revenue per core customer (ARPCC) increased by 132% to approximately RMB 1.04 million in 2024, up from RMB 447,270 in 2023[34]. - The number of core customers connected to the fintech platform rose from 10 in 2023 to 17 in 2024, accounting for 98% of total fintech revenue[34]. - The fintech business generated revenue of RMB 1.8 billion in 2024, representing a remarkable year-on-year increase of 290%[31]. Asset Quality and Risk Management - The overdue rate for loans over 90 days improved to 1.86%, indicating enhanced asset quality[12]. - The overdue rate for financing transactions over 180 days was 1.39% as of December 31, 2024, a slight improvement from 1.49% in 2023[81]. - The company has implemented a data-driven credit assessment system to manage credit risk effectively across all service categories and product lines[88]. - The company actively monitors historical overdue rates and enhances data analysis capabilities to improve asset quality management[88]. - The expected credit loss (ECL) model follows a "three-stage" impairment model as per IFRS 9, with significant credit risk increases leading to a shift from Stage 1 to Stage 2[148]. Market and Industry Trends - The Chinese automotive finance industry is expected to see greater development opportunities in 2025, driven by rising consumer demand and industry upgrades[15]. - In 2024, China's new passenger car sales reached 27.6 million units, a year-on-year increase of 5.8%[19]. - Retail sales of new energy vehicles in 2024 reached 10.9 million units, marking a 40.7% year-on-year growth[20]. - China's automobile export volume reached 5.9 million units in 2024, reflecting a year-on-year increase of 19.3%[20]. - The government has implemented a series of supportive policies for the automotive industry, including the "old-for-new" subsidy program, which is expected to drive market activity in 2024[22]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.065 per share, representing approximately 50.1% of the earnings per share during the reporting period[16]. - The total dividend proposed for the year ending December 31, 2024, is approximately HKD 878.5 million (approximately RMB 810.9 million), compared to HKD 195.7 million for the previous year[74]. - The company paid dividends to shareholders amounting to RMB 177,681 thousand in 2024, a decrease of 7.4% from RMB 191,963 thousand in 2023[133]. Operational Efficiency and Cost Management - The cost of revenue increased by 53% to RMB 5.25 billion, driven by higher commissions and funding costs associated with the transaction platform and self-financing services[53]. - Sales and marketing expenses decreased by 3% year-on-year to RMB 1.02 billion, primarily due to reduced marketing and advertising costs[63]. - Administrative expenses increased by 26% year-on-year to RMB 443 million, mainly due to higher salaries and professional service fees[64]. - Research and development expenses increased by 20% to RMB 232.6 million, indicating a focus on innovation and technology development[44]. Cash Flow and Liquidity - The net cash used in operating activities was RMB 2 billion for the reporting period, down from RMB 8.7 billion for the year ended December 31, 2023, due to enhanced collection measures[97]. - The year-end cash and cash equivalents reached RMB 4,212,760 thousand, up from RMB 3,479,550 thousand at the end of 2023, representing a growth of 21.1%[134]. - The net cash inflow from financing activities for 2024 was RMB 2,563,956 thousand, a decrease of 73.0% compared to RMB 9,486,435 thousand in 2023[133]. Employee and Workforce Development - The total employee compensation cost for the year was RMB 1,019,000,000, an increase from RMB 945,000,000 in 2023, representing a growth of approximately 7.8%[115]. - The company has 4,278 full-time employees as of December 31, 2024, compared to 4,231 in 2023, indicating a growth in workforce[114].

Investment Rating - The report assigns a neutral investment rating to the company, indicating that the potential investment return based on the stock price is between -10% and 10% [13][25]. Core Insights - The company has shown steady growth in financing volume and scale, with total financing transactions reaching 18.5 billion RMB in Q3 2024, a year-on-year increase of 4.5%. The number of financing transactions grew to 192,000, up 5.2% year-on-year, with used car transactions significantly increasing by 27.4% [3][6]. - The company is actively expanding its used car financing business, reflecting its competitive advantage against mainstream financial institutions, supported by policies promoting the used car market since 2022 [3][6]. - The penetration rate of new energy vehicles (NEVs) in China continues to rise, with financing transactions for NEVs increasing by 26.8% year-on-year to 53,000 in Q3 2024 [3][6]. Financial Summary - The company's revenue has shown significant growth, with actual revenues of 3,494 million RMB in FY21, 5,202 million RMB in FY22, and 6,686 million RMB in FY23, reflecting growth rates of 5.1%, 48.9%, and 28.5% respectively [5][24]. - Net profit has also improved, with figures of 29 million RMB in FY21, 371 million RMB in FY22, and 555 million RMB in FY23, showing growth rates of -102.5%, 1,180.7%, and 49.7% respectively [5][24]. - The company reported an adjusted net profit of 910 million RMB for 2023, a year-on-year increase of 32.2%, and an adjusted net profit of 510 million RMB for the first half of 2024, up 22.9% year-on-year [7][19]. Business Performance - The company has established itself as the largest internet automotive finance transaction platform in China, leveraging strategic investments from Tencent and JD.com to enhance its credit analysis capabilities [6][19]. - In Q3 2024, the financing amount facilitated under the fintech model reached approximately 5.6 billion RMB, a year-on-year increase of 87.2%, with NEVs accounting for about 60.6% of this amount [7][19]. - The company aims to capitalize on the strong demand from financial institutions in the automotive fintech sector, which is expected to drive performance upward [7][19].

Financial Performance - The company's revenue reached RMB 4.5 billion, representing a year-on-year growth of 57%, while net profit was RMB 410 million, a 54% increase from RMB 266 million in the same period last year[8]. - Total revenue for the six months ended June 30, 2024, reached RMB 4,467,853 thousand, a significant increase from RMB 2,844,190 thousand in the same period of 2023, representing a growth of approximately 57.2%[123]. - Gross profit for the same period was RMB 2,128,937 thousand, compared to RMB 1,423,454 thousand in 2023, indicating a year-over-year increase of about 49.5%[123]. - Operating profit for the six months ended June 30, 2024, was RMB 576,522 thousand, up from RMB 253,962 thousand in 2023, reflecting a growth of approximately 126.7%[123]. - Net profit for the period was RMB 409,676 thousand, compared to RMB 266,395 thousand in the previous year, marking an increase of around 53.6%[123]. - Adjusted net profit reached RMB 507.48 million, a 23% increase from RMB 412.92 million year-over-year[29]. - The total revenue cost rose by 65% year-on-year to RMB 2.34 billion, mainly due to increased commissions and funding costs[34]. Financing and Transactions - In the first half of 2024, Yixin Group achieved a financing transaction volume of 329,000, an increase of 5.3% year-on-year, with a financing amount of RMB 31.5 billion, up 3.5% year-on-year[8]. - The total financing transactions for the reporting period reached 329,000, an increase of 5.3% from 312,000 in the same period last year[20]. - New energy vehicle financing transactions amounted to 70,000, a significant increase of 77.8% compared to 39,000 in the previous year[21]. - The financing amount for new energy vehicles reached RMB 7.1 billion, representing a growth of 63.1% from RMB 4.4 billion year-on-year[21]. - The financing transaction amount facilitated by the financial technology model reached RMB 9.7 billion, a year-on-year increase of 264.1%[12]. - The company expects the financing amount facilitated by its financial technology platform to exceed RMB 20 billion in 2024[12]. Market Trends and Positioning - The total sales of passenger cars in China increased by 6.5% year-on-year in the first half of 2024, with new energy vehicle retail sales growing by 33.1% year-on-year, achieving a penetration rate of 48% in new car retail sales by June 2024[8]. - Yixin Group's financing for new energy vehicles reached RMB 7.1 billion, marking a significant year-on-year growth of 63.1%[8]. - The company has established partnerships with approximately 40 new energy vehicle manufacturers, enhancing its market positioning and growth prospects[11]. - The retail sales of new energy vehicles (NEVs) reached 4.1 million units in the first half of 2024, showing a year-on-year growth of 33.1%[16]. - The penetration rate of NEVs in domestic new car sales reached 48% as of June 2024[16]. Cost and Expenses - The cost of revenue increased by 65% to RMB 2,338.92 million, compared to RMB 1,420.74 million in the previous year[29]. - Sales and marketing expenses rose by 31% to RMB 673.91 million, up from RMB 513.90 million year-over-year[29]. - Research and development expenses increased by 15% to RMB 107.65 million, compared to RMB 93.34 million in the previous year[29]. - The financial cost net amount surged by 955% to RMB 14.51 million, compared to RMB 1.38 million in the previous year[29]. Risk Management and Compliance - The company has implemented a comprehensive risk management and internal control system to address credit risk, which is the primary risk faced by the company[55]. - The overdue rate for all financing transactions (including self-operated financing leasing and trading platform businesses) was 1.47% for over 180 days and 1.86% for over 90 days as of June 30, 2024, showing slight improvements from 1.49% and 1.89% respectively as of December 31, 2023[54]. - The company is continuously assessing compliance with qualification requirements in light of regulatory developments in China[106]. - The board confirmed its responsibility for the risk management and internal control systems, which aim to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[112]. Shareholder Information and Equity - The total number of issued shares as of June 30, 2024, is 6,524,065,512[81]. - The company has granted a total of 341,217,576 shares under the first share incentive plan as of June 30, 2024[87]. - The company plans to terminate the first share incentive plan following the approval of the 2024 share plan[87]. - The total number of shares that may be issued under the 2024 Share Plan is initially set at 10% of the total issued shares as of the plan's adoption date, amounting to 652,406,551 shares[97]. - The company declared dividends amounting to RMB (177,692) thousand during the period, compared to RMB (187,456) thousand in the same period last year[128]. Investments and Acquisitions - The acquisition of Dalian Rongxin Financing Guarantee Co., Ltd. was completed on April 2, 2024, for a cash consideration of RMB 640 million, expanding the company's trading platform business[176]. - The identifiable net assets acquired from Dalian Rongxin amounted to RMB 1,092,963,000, after accounting for the investment in the joint venture and the bargain purchase gain[177]. - The company invested $260 million (approximately HKD 2.04 billion) in convertible bonds from Yusheng, representing a 40.63% equity stake in Yusheng's Pre-A series preferred shares[66]. Cash Flow and Liquidity - Cash and cash equivalents increased by 28% year-on-year to RMB 4,451 million[49]. - The company’s net cash generated from operating activities was RMB 634 million for the reporting period, a decrease from RMB 4.332 billion in the same period last year, mainly due to faster accounts receivable turnover and reduced payments for new financing lease transactions[58]. - The current ratio improved to 1.37 as of June 30, 2024, compared to 1.33 as of December 31, 2023, due to an increase in current assets[62]. - The total borrowings increased to RMB 24.2 billion as of June 30, 2024, from RMB 23.2 billion as of December 31, 2023, driven by business expansion[59]. Employee and Compensation - The total employee compensation cost, including equity incentive expenses, was RMB 507 million for the reporting period, compared to RMB 470 million in the same period last year[68]. - As of June 30, 2024, the company employed 4,303 full-time employees, an increase from 4,231 employees as of December 31, 2023[68]. - The company’s employee benefit expenses increased to RMB 506,922 thousand for the six months ended June 30, 2024, compared to RMB 470,029 thousand for the same period in 2023, marking an increase of approximately 8%[163].