Financial Performance - For the three months ended March 31, 2025, the company reported interest income of RMB 44,103,000, a decrease of 15.5% from RMB 52,219,000 in the same period of 2024[3] - Net interest income for the same period was RMB 35,199,000, down 13.5% from RMB 40,610,000 year-on-year[3] - The company recorded a pre-tax profit of RMB 20,858,000, a significant decline of 61.3% compared to RMB 53,830,000 in the previous year[3] - The net profit attributable to the owners of the parent company was RMB 14,830,000, down 61.0% from RMB 38,062,000 in the same period last year[3] - The company reported a decrease in other net income to RMB (4,452,000) from RMB 17,876,000, reflecting a significant decline[3] - The company’s administrative expenses increased to RMB 10,293,000 from RMB 9,454,000, an increase of 8.8%[3] Assets and Liabilities - Total assets increased to RMB 2,641,886,000 as of March 31, 2025, compared to RMB 2,578,519,000 at the end of 2024, reflecting a growth of 2.5%[4] - The company's cash and cash equivalents decreased to RMB 5,032,000 from RMB 10,515,000, a decline of 52.2%[4] - The total liabilities increased to RMB 585,357,000 from RMB 537,408,000, marking an increase of 8.9%[4] - The company’s net assets rose to RMB 2,056,529,000, up from RMB 2,041,111,000, indicating a growth of 0.8%[4]

Financial Performance - Interest income for 2024 decreased to RMB 196,354,000, down 16.9% from RMB 236,165,000 in 2023[15] - Profit before tax for 2024 was RMB 91,604,000, a decline of 30.1% compared to RMB 131,091,000 in 2023[15] - The annual profit attributable to equity shareholders for 2024 was RMB 62,440,000, a decrease of 32.6% from RMB 92,650,000 in 2023[15] - Net interest income for 2024 was RMB 155,842 thousand, down 16.7% from RMB 187,149 thousand in 2023[35] - Total annual profit and comprehensive income for the years ending December 31, 2023, and 2024, were RMB 96.6 million and RMB 65.4 million, respectively[44] - Total assets as of December 31, 2024, were RMB 2,578,519,000, a decrease of 3.0% from RMB 2,657,317,000 in 2023[15] - Total liabilities for 2024 decreased to RMB 537,408,000, down 18.0% from RMB 654,603,000 in 2023[15] - Total equity increased to RMB 2,041,111,000 in 2024, up 1.9% from RMB 2,002,714,000 in 2023[15] Loan and Asset Management - The company's total loan balance (excluding accrued interest) decreased from RMB 2,700.9 million as of December 31, 2023, to RMB 2,640.5 million as of December 31, 2024[24] - The total loans and advances to customers amounted to RMB 2,656,268 thousand as of December 31, 2024, a decrease of 2.4% from RMB 2,720,846 thousand as of December 31, 2023[27] - The non-performing loan ratio improved to 3.9% in 2024 from 4.6% in 2023, indicating better loan quality[31] - The total overdue loans decreased to RMB 104,956 thousand in 2024 from RMB 124,812 thousand in 2023, reflecting a reduction of 15.9%[33] - The overdue loan rate decreased to 4.0% in 2024 from 4.6% in 2023, showing an improvement in loan management[31] - The total amount of loans with credit impairment was RMB 384,215 thousand as of December 31, 2024, compared to RMB 127,715 thousand in 2023[30] Strategic Focus and Development - The company plans to focus on market expansion and new product development in the upcoming fiscal year[14] - The management highlighted ongoing research and development efforts aimed at enhancing service offerings[14] - The company is exploring potential mergers and acquisitions to strengthen its market position[14] - Future guidance indicates a cautious outlook due to market conditions, with a focus on cost management and operational efficiency[14] - The company aims to enhance its internal capabilities and institutional framework to align with business development while continuing its green development strategy[18] Green Development and Sustainability - The company established an ESG Sustainable Development Committee under the board to support its sustainable development strategy[18] - The company aims to focus on green sustainable development and enhance its service to small and micro enterprises and the agricultural sector[116] - The company is committed to green development, responding to national carbon neutrality goals, and expanding green loan products[170] - The company has implemented a green loan information management system, which is the first of its kind in the country to receive national software copyright certification[139] - The company has engaged international investors and consultants to enhance its green loan capabilities and ESG training for board members and employees[140] Employee Management and Corporate Governance - The company employed 77 employees as of December 31, 2024, down from 86 employees as of December 31, 2023, reflecting a decrease of about 10.5% in workforce size[69] - The employee turnover rate for contract employees decreased to 10.47% in 2024 from 18.09% in 2023, reflecting improved employee retention[121] - The company maintained a strict adherence to labor laws, ensuring no instances of child labor or forced labor as of December 31, 2024[150] - The company provides financing solutions to clients in agriculture, small and micro enterprises, and online retailers, with a focus on green loans for ecological industries[181] - The company has a policy against commercial bribery, requiring all employees to sign a declaration against it when issuing loans[169] Customer Relations and Market Position - The company is positioned to benefit from supportive policies in Zhejiang Province aimed at achieving common prosperity and enhancing economic development[76] - The company has established partnerships with DEG and GCPF to enhance its green loan offerings, aiming to better serve green loan customers[79] - The company actively collects customer feedback through various channels to improve service quality[162] - The company has no major disputes with customers, reflecting strong customer relationships[187] - Interest income from the top five customers accounted for less than 30% of the company's total annual interest income as of December 31, 2024[188]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported interest income of RMB 196,354,000, a decrease of 16.9% from RMB 236,165,000 in 2023[4] - Net interest income for the same period was RMB 155,842,000, down 16.7% from RMB 187,149,000 in the previous year[4] - The net profit for the year was RMB 65,397,000, down 32.3% from RMB 96,636,000 in 2023[4] - Basic and diluted earnings per share were RMB 0.05, compared to RMB 0.08 in the previous year, indicating a decline of 37.5%[4] - The company reported a pre-tax profit of RMB 91,604 thousand for 2024, down 30.1% from RMB 131,091 thousand in 2023[86] - The company's profit attributable to equity shareholders for the year ended December 31, 2024, was RMB 62,440,000, a decrease of 32.6% from RMB 92,650,000 in 2023[93] - The total profit and comprehensive income for the year decreased from RMB 10,666 thousand in 2023 to RMB 8,276 thousand in 2024, a decline of approximately 22.4%[120] Asset and Liability Management - Total assets decreased to RMB 2,578,519,000 from RMB 2,657,317,000, reflecting a decline of 3.0%[5] - The company's total liabilities decreased to RMB 537,408,000 from RMB 654,603,000, a reduction of 18.0%[5] - Cash and cash equivalents decreased to RMB 10,515,000 from RMB 17,478,000, a drop of 39.8%[5] - The company’s goodwill decreased to RMB 12,604,000 from RMB 18,005,000, a decline of 30.0%[5] - The company’s total equity increased slightly to RMB 2,041,111,000 from RMB 2,002,714,000, an increase of 1.9%[5] - The total liabilities from financing activities as of December 31, 2024, were RMB 490,134,000, a decrease from RMB 596,457,000 at the beginning of the year[98] Cash Flow and Financing Activities - Operating cash flow for the year ended December 31, 2024, was RMB 197,548,000, a decrease of 40% from RMB 330,362,000 in 2023[8] - Net cash generated from operating activities was RMB 160,848,000, down 43.5% from RMB 284,948,000 in the previous year[8] - Cash used in financing activities amounted to RMB 167,854,000, a reduction of 40.9% from RMB 284,041,000 in 2023[8] - The company received RMB 25,000,000 from bank borrowings, a significant decrease of 66.7% compared to RMB 75,000,000 in the previous year[8] - The company paid dividends to equity shareholders amounting to RMB 23,600,000, down 50% from RMB 47,200,000 in 2023[8] Credit and Impairment Management - The company employs an expected credit loss model to measure impairment losses on loans and advances provided to customers[148] - The total expected credit loss provisions amounted to RMB 194,214 thousand, a decrease from RMB 198,495 thousand as of December 31, 2023, reflecting a reduction of approximately 1.4%[111] - The total amount of impaired loans decreased to RMB 104,744 thousand in 2024 from RMB 124,485 thousand in 2023, a reduction of approximately 15.8%[200] - The overdue loan balance decreased to RMB 104,956 thousand in 2024 from RMB 124,812 thousand in 2023, indicating improved collection efforts[200] - The provision for impairment losses totaled RMB 194,214 thousand in 2024, compared to RMB 198,495 thousand in 2023, reflecting a decrease in risk provisions[198] Operational Highlights - The company did not engage in any significant new product or technology development during the reporting period[9] - There were no major market expansions or acquisitions reported in the financial statements[9] - The company has only one reportable segment, primarily providing loan services in Zhejiang Province, China[82] - The company is the largest licensed micro-lending company in Zhejiang province, focusing on green lending practices[188] Employee and Management Costs - Employee costs for 2024 totaled RMB 16,415 thousand, down 6.9% from RMB 17,641 thousand in 2023[85] - Total remuneration for directors and supervisors for the year 2024 amounted to RMB 2,930,000, compared to RMB 3,330,000 in 2023, indicating a decrease of 12%[90] - The total remuneration for key management personnel decreased from RMB 3,330 thousand in 2023 to RMB 2,930 thousand in 2024, reflecting a reduction of approximately 12%[171] Taxation and Reserves - The provision for current income tax for 2024 was RMB 26,908 thousand, a decrease of 28% from RMB 37,312 thousand in 2023[86] - The total amount of tax provision for the year in China decreased from RMB 37,312 million in 2023 to RMB 26,908 million in 2024[129] - The company plans to allocate RMB 1.4 million (10% of net profit) to statutory surplus reserves for the year ending December 31, 2024[138] - The general risk reserve will see a reversal of RMB 1.1 million from the general risk reserve to retained earnings[138] Financial Instruments and Fair Value - Financial assets and liabilities are recognized in the financial position statement when the group becomes a party to the financial instrument contract[34] - The group measures financial instruments initially at fair value plus directly attributable transaction costs, except for those measured at fair value through profit or loss[34] - Fair value measurement is based on active market quotes if available; otherwise, valuation techniques are used[49] - The fair value of financial instruments measured at fair value is not applicable as the company has no financial instruments measured at fair value as of the reporting dates[168] Market and Economic Conditions - The average interest rate on loans decreased from 8.7% in 2023 to 7.4% in 2024, a decline of approximately 14.9%[192] - The company faces currency risk primarily from interest-bearing borrowings denominated in euros, with a reported exposure of RMB (124,527) thousand in 2024, down from RMB (195,802) thousand in 2023[163] - The after-tax profit impact from a 100 basis point increase in the euro exchange rate is estimated at RMB (934) thousand for 2024, compared to RMB (1,469) thousand for 2023[165]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported interest income of RMB 196,354,000, a decrease of 16.9% from RMB 236,165,000 in 2023[4] - Net interest income for the same period was RMB 155,842,000, down 16.7% from RMB 187,149,000 in the previous year[4] - The net profit for the year was RMB 65,397,000, a decrease of 32.3% compared to RMB 96,636,000 in 2023[4] - Basic and diluted earnings per share were RMB 0.05, down from RMB 0.08 in the previous year, representing a decline of 37.5%[4] - The company's profit attributable to equity shareholders for the year ended December 31, 2024, was RMB 62,440,000, a decrease of 32.6% from RMB 92,650,000 in 2023[93] - The total profit and comprehensive income for the year decreased from RMB 10,666 thousand in 2023 to RMB 8,276 thousand in 2024, a decline of approximately 22.4%[120] Asset and Liability Management - Total assets decreased to RMB 2,578,519,000 from RMB 2,657,317,000, reflecting a decline of 3.0%[5] - The company's total liabilities decreased to RMB 537,408,000, down 18.0% from RMB 654,603,000 in the previous year[5] - Cash and cash equivalents decreased to RMB 10,515,000 from RMB 17,478,000, a decline of 39.8%[5] - The company’s goodwill decreased to RMB 12,604,000 from RMB 18,005,000, a reduction of 30.0%[5] - The total liabilities as of December 31, 2024, were RMB (538,255) thousand, compared to RMB (666,232) thousand in 2023, representing a decrease of about 19.22%[155] - The company's total liabilities related to lease obligations decreased from RMB 3,154 million in 2023 to RMB 1,918 million in 2024[126] Cash Flow and Financing Activities - Operating cash flow for the year ended December 31, 2024, was RMB 197,548,000, a decrease of 40% from RMB 330,362,000 in 2023[8] - Net cash generated from operating activities was RMB 160,848,000, down 43.5% from RMB 284,948,000 in the previous year[8] - Cash inflow from bank borrowings was RMB 25,000,000, a significant decrease of 66.7% from RMB 75,000,000 in 2023[8] - Total cash outflow from financing activities was RMB 167,854,000, down 40.9% from RMB 284,041,000 in the previous year[8] - The company paid dividends of RMB 23,600,000 to equity shareholders, a reduction of 50% from RMB 47,200,000 in 2023[8] Credit Risk and Loan Management - The total loans and advances to customers amounted to RMB 2,656,268 thousand as of December 31, 2024, a decrease from RMB 2,720,846 thousand in 2023, representing a decline of approximately 2.4%[195] - The total overdue loans as of December 31, 2024, reached RMB 104,956 thousand, a reduction from RMB 124,812 thousand in 2023, reflecting a decrease of approximately 15.93%[106] - The non-performing loan ratio improved to 3.9% in 2024 from 4.6% in 2023, indicating a positive trend in credit quality[200] - The provision coverage ratio increased to 185% in 2024, up from 159% in 2023, reflecting stronger risk management practices[200] - The impairment loss provision for loans was RMB 194,214 thousand in 2024, slightly lower than RMB 198,495 thousand in 2023[200] Operational Efficiency and Strategic Focus - The company plans to focus on improving operational efficiency and exploring new market opportunities in the upcoming fiscal year[4] - The company identified only one reportable segment, primarily focused on providing loan services in Zhejiang Province, China[82] - The company actively explores green loan models, focusing on sectors such as ecological agriculture and renewable energy development[191] Compliance and Accounting Standards - The company’s financial statements comply with all applicable Hong Kong Financial Reporting Standards[9] - The company has not identified any significant reclassifications of liabilities following the adoption of new accounting standards[12] - The company is continuously evaluating its tax provisions based on changes in tax laws, ensuring compliance and optimizing tax liabilities[180] Employee and Management Costs - Employee costs totaled RMB 16,415 thousand in 2024, down 6.9% from RMB 17,641 thousand in 2023[85] - The total remuneration for directors and supervisors for the year 2024 was RMB 2,930,000, compared to RMB 3,330,000 in 2023, indicating a reduction of 12.0%[90] - The highest-paid individual's total remuneration for 2024 was RMB 511,000, slightly down from RMB 521,000 in 2023[92] Investment and Asset Valuation - The fair value of investment properties as of December 31, 2024, was RMB 165 million, down from RMB 191 million in 2023[124] - The company acquired a 6% stake in Xingyao Microfinance for a total consideration of RMB 8,244 thousand, increasing its ownership from 60% to 66%[121] - The company is actively reviewing its financial assets for impairment, utilizing expected credit loss models to assess potential losses[176]

Financial Performance - For the nine months ended September 30, 2024, interest income was RMB 149,899,000, a decrease of 17% from RMB 180,392,000 in the same period of 2023[2] - Net interest income for the same period was RMB 119,628,000, down 17% from RMB 143,607,000 year-on-year[2] - The company reported a profit before tax of RMB 82,347,000, a decline of 30% compared to RMB 117,566,000 in the previous year[2] - The net profit for the nine months was RMB 60,512,000, representing a decrease of 31% from RMB 87,571,000 in the same period last year[2] Assets and Liabilities - Total assets as of September 30, 2024, were RMB 2,616,846,000, a slight decrease from RMB 2,657,317,000 at the end of 2023[3] - Total liabilities decreased to RMB 580,620,000 from RMB 654,603,000 at the end of 2023, reflecting a reduction of approximately 11%[3] - Cash and cash equivalents increased to RMB 35,675,000 from RMB 17,478,000, indicating a significant improvement in liquidity[3] - The company’s net assets rose to RMB 2,036,226,000 from RMB 2,002,714,000, showing a growth of about 2%[3] Accounting and Audit - The company maintained the same accounting policies as disclosed in the 2023 annual report, adhering to applicable new international financial reporting standards[4] - The audit committee has reviewed the unaudited consolidated results for the nine months ended September 30, 2024[4]

佐力科創小額貸款股份有限公司 Zuoli Kechuang Micro-finance Company Limited O (於中華人民共和國註冊成立的股份有限公司) 心 股份代號：6866 1 2024 中期報告 目 錄 | --- | --- | |--------------------------|-------| | | | | 釋義 | 02 | | 公司資料 | 04 | | 管理層討論及分析 | 06 | | 獨立核數師報告 | 20 | | 綜合損益及其他全面收益表 | 21 | | 綜合財務狀況表 | 22 | | 綜合權益變動表 | 23 | | 簡明綜合現金流量表 | 24 | | 未經審核中期財務報告附註 | 25 | | 其他資料 | 52 | 釋義 | --- | --- | --- | --- | |------------------------------------------------------|-------|------------------------------------------------------------------------------ ...

Financial Performance - For the six months ended June 30, 2024, the company reported interest income of RMB 102,616,000, a decrease of 16.2% from RMB 122,463,000 in the same period of 2023[3]. - Net interest income for the same period was RMB 81,431,000, down 16.2% from RMB 97,206,000 year-on-year[3]. - The company recorded other net income of RMB 17,408,000, compared to a loss of RMB 13,834,000 in the previous year, indicating a significant improvement[3]. - Total profit and comprehensive income for the period was RMB 46,626,000, a decrease of 20.6% from RMB 58,753,000 in the prior year[3]. - Basic and diluted earnings per share were RMB 0.04, down from RMB 0.05 in the same period last year[3]. - The company's net profit for the six months ended June 30, 2024, was approximately RMB 44.9 million, compared to RMB 56.1 million for the same period in 2023, reflecting a decrease of about 20.1%[23]. - The company's net profit and total comprehensive income for the six months ended June 30, 2023, was RMB 58.8 million, compared to RMB 46.6 million for the six months ended June 30, 2024, reflecting a decline of approximately 20.0%[91]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 2,608,539,000, a decrease from RMB 2,657,317,000 at the end of 2023[4]. - Total liabilities decreased to RMB 586,199,000 from RMB 654,603,000 at the end of 2023, reflecting a reduction of 10.4%[4]. - The company's net assets increased to RMB 2,022,340,000 from RMB 2,002,714,000, showing a slight growth of 1%[4]. - The total amount of loans and advances to customers as of June 30, 2024, was RMB 2,660,517 thousand, a decrease of 2.2% from RMB 2,720,846 thousand as of December 31, 2023[26]. - The total liabilities and other payables decreased by RMB 4.6 million from RMB 23,290 thousand as of December 31, 2023, to RMB 18,678 thousand as of June 30, 2024[101]. - The current tax payable was RMB 34.9 million as of December 31, 2023, and decreased to RMB 16.3 million as of June 30, 2024[102]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 96.7 million, reflecting a pre-tax profit of RMB 64.5 million[92]. - Cash and cash equivalents rose to RMB 24,755,000 from RMB 17,478,000, indicating a significant increase of 41.7%[4]. - The net cash used in financing activities for the six months ended June 30, 2024, was RMB 89.5 million, primarily due to interest payments and loan repayments[93]. - The company’s cash flow from operating activities showed a decrease in cash and cash equivalents, indicating potential liquidity challenges moving forward[25]. Loans and Advances - The total outstanding loans and advances to customers amounted to RMB 2,470,995 thousand as of June 30, 2024, compared to RMB 2,522,351 thousand as of December 31, 2023[59]. - The overdue loans totalled RMB 124,812 thousand as of June 30, 2024, which includes RMB 76,713 thousand overdue for more than one year[28]. - The retail loans segment accounted for 57% of the total loans and advances to customers, amounting to RMB 1,500,932 thousand as of June 30, 2024, compared to RMB 1,526,958 thousand as of December 31, 2023[27]. - The majority of loans provided were guaranteed loans, accounting for approximately 97.9% and 97.8% of total loans and advances as of December 31, 2023, and June 30, 2024, respectively[99]. - The company has maintained a high percentage of loans under RMB 1 million, with 76.3% of loans falling within this range as of June 30, 2024[79]. Impairment and Credit Loss - The provision for impairment losses on loans was RMB (189,522) thousand as of June 30, 2024, compared to RMB (198,495) thousand as of December 31, 2023, showing a reduction of about 4.4%[26]. - The impairment loss provision for loans amounted to RMB 189.522 million as of June 30, 2024, reflecting the company's risk management strategy[80]. - The company's impaired loan balance decreased from RMB 124.5 million to RMB 104.6 million, representing a reduction of approximately 18.9%[83]. - The overdue loan balance decreased from RMB 124.8 million to RMB 104.9 million, reflecting a decline of about 16%[84]. - The impairment loan ratio improved from 4.6% to 3.9%, indicating enhanced loan portfolio quality[81]. Dividends and Shareholder Returns - The company approved dividends amounting to RMB 47,200 thousand for the previous fiscal year[8]. - The approved cash dividend for the fiscal year 2023 is RMB 23.6 million, equating to RMB 0.02 per share, down from RMB 47.2 million (RMB 0.04 per share) for the previous fiscal year[43]. - The board has decided not to declare any interim dividend for the six months ending June 30, 2024, consistent with the previous year[121]. Strategic Initiatives - The company aims to explore sustainable green credit pathways and has been recognized as the first green microfinance company in Huzhou since April 2020, participating in the formulation of local standards for green microfinance[116]. - The company has positioned itself as a green micro-lending company, focusing on financing for ecological agriculture, renewable energy, and energy-saving projects[77]. - The company has partnered with DEG and GCPF to gain international support for developing more green loan products[116]. Risk Management - The group faces credit risk primarily from its micro-lending and treasury operations, with policies in place to manage these risks effectively[51]. - The credit risk primarily arises from the microloan business, with mechanisms established for pre-loan assessment, credit approval, and post-loan monitoring[52]. - The company does not generally obtain collateral from customers for loans[55]. - The company faces geographical concentration risk as it primarily operates in Zhejiang Province, which may be affected by economic fluctuations[54].

Financial Performance - For the three months ended March 31, 2024, the company reported interest income of RMB 52,219,000, a decrease of 14.5% from RMB 61,342,000 in the same period of 2023[4] - Net interest income for the same period was RMB 40,610,000, down 16.0% from RMB 48,413,000 year-on-year[4] - The company achieved a profit before tax of RMB 53,830,000, representing a significant increase of 56.6% compared to RMB 34,413,000 in the previous year[4] - The net profit for the period was RMB 38,775,000, an increase of 57.3% from RMB 24,651,000 in the same quarter of 2023[4] - The company reported an increase in other net income to RMB 17,876,000, compared to a loss of RMB 1,675,000 in the same period last year[4] - The company’s administrative expenses decreased to RMB 9,454,000 from RMB 13,637,000, reflecting improved cost management[4] Assets and Liabilities - The total assets of the company as of March 31, 2024, were RMB 2,695,599,000, up from RMB 2,657,317,000 at the end of 2023[6] - Cash and cash equivalents increased to RMB 42,441,000 from RMB 17,478,000, indicating a substantial growth in liquidity[6] - The company's total liabilities slightly decreased to RMB 654,110,000 from RMB 654,603,000[6] - The net assets of the company rose to RMB 2,041,489,000, compared to RMB 2,002,714,000 at the end of the previous year[6]

Financing Solutions - The company provided financing solutions to clients in agriculture, small and micro enterprises, and online retailers, focusing on short-term financing needs[4] - In 2023, the company issued loans totaling RMB 3,085.36 million, with interest income of RMB 236.17 million and a net profit of RMB 96.64 million, maintaining stable operational performance[182] - Approximately 76.6% of the company's loan agreements as of December 31, 2023, had a maximum loan amount of RMB 1 million, indicating a focus on small and micro enterprises[189] Corporate Governance - The company has fully complied with the corporate governance code throughout the year ending December 31, 2023[40] - The company’s board consists of four executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse governance structure[40] - The supervisory board has been monitoring the legality and reasonableness of the company's operations and management, confirming compliance with applicable laws and regulations[36] - The company has established a three-year term for all independent non-executive directors to provide independent and objective opinions to the board[47] - The audit committee consists of three independent non-executive directors, ensuring appropriate professional qualifications and experience[49] - The board has reviewed its corporate governance policies and practices, including compliance with legal and regulatory requirements[112] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[134] Risk Management - The company’s major risks and uncertainties were discussed, emphasizing the importance of strict loan approval systems and daily tracking management[5][8] - The company has established a sound risk management and internal control system to effectively manage operational risks[68] - The board has reviewed the effectiveness of the risk management and internal control systems, which are deemed effective and adequate as of December 31, 2023[123] - The company has established comprehensive policies and procedures for operational, financial, and risk management to ensure asset protection and reliable financial reporting[96] Financial Performance - The company's total assets as of December 31, 2023, were RMB 2,657.32 million, while total liabilities were RMB 654.60 million, resulting in total equity of RMB 2,002.71 million[196] - Total liabilities decreased from RMB 826.12 million in 2022 to RMB 654.60 million in 2023, indicating improved financial stability[196] - Interest income decreased from RMB 250.46 million in 2022 to RMB 236.17 million in 2023, reflecting a decline in revenue[196] Green Development - The company actively explores green loan models, issuing loans to green industries such as ecological agriculture and renewable energy[4] - The company plans to continue its green development strategy and aims to become a leading local financial organization in sustainable finance[183] - The company was recognized as an outstanding unit in the construction of the National Green Finance Reform and Innovation Pilot Zone in Huzhou in March 2023[181] - As of December 31, 2023, the company's green loan balance reached approximately RMB 681 million, accounting for about 25.2% of the total loan balance, an increase of approximately 5 percentage points compared to the previous year[198] - The company has successfully established an Environmental and Social Management System (ESMS) to assess and manage clients' environmental and social risks[198] - The company is actively transforming towards a green and sustainable development model, strengthening its green credit business based on inclusive finance[198] Shareholder Information - The company plans to present a resolution at the annual general meeting to reappoint KPMG as its auditor[15] - The company has maintained the required public float under the listing rules as of December 31, 2023[126] - The board has proposed a final dividend of RMB 0.02 per share for the year ending December 31, 2023[148] - Non-resident individual shareholders will not have personal income tax withheld on dividends distributed by the company, as approved by the Zhejiang Provincial Department of Commerce[149] - The company is required to withhold corporate income tax at a rate of 10% on dividends distributed to non-resident corporate shareholders[158] Internal Controls and Compliance - The company has established a rigorous internal structure to prevent misuse of insider information and avoid conflicts of interest[123] - The company has a robust internal audit function to analyze and independently assess the adequacy and effectiveness of its systems[123] - All directors confirmed compliance with the relevant standards of the code of conduct for securities trading during the fiscal year[121] - The company has not entered into any significant contracts with the controlling shareholder or its subsidiaries during the reporting period[56] - The company has not entered into any stock-linked agreements during the year ending December 31, 2023[129] - There were no management contracts established for the overall or any significant part of the company's business during the fiscal year ending December 31, 2023[102] Remuneration and Compensation - The remuneration policy aims to maintain a fair and competitive compensation scheme based on market levels and the performance of the group[50] - The remuneration range for senior management includes one individual earning between RMB 250,001 and RMB 500,000[51] - The company maintained appropriate liability insurance for directors and senior officers throughout the fiscal year[98] Board Meetings and Attendance - The company held a shareholders' meeting on June 29, 2023, with full attendance from all directors[114] - The board has delegated daily operational responsibilities to the executive directors while regularly reviewing the appropriateness of this delegation[73] - The board consists of experienced members, with the chairman and CEO being in their positions since April 28, 2014[133]

Financial Performance - For the year ended December 31, 2023, the company reported interest income of RMB 236,165,000, a decrease of 5.2% from RMB 250,458,000 in 2022[4] - Net interest income for the same period was RMB 187,149,000, down 5.6% from RMB 198,335,000 in the previous year[4] - The company recorded a total profit and comprehensive income of RMB 96,636,000, slightly down from RMB 96,696,000 in 2022, representing a decrease of 0.06%[4] - Basic and diluted earnings per share remained stable at RMB 0.08 for both 2023 and 2022[4] - The total other net income for 2023 was a loss of RMB 12,677,000, compared to a gain of RMB 9,930,000 in 2022, reflecting a significant decline[85] - The company reported a government subsidy of RMB 24,100,000 in 2022, which was not present in 2023, indicating a loss of this income source[85] - The company’s total comprehensive income for the year rose to RMB 10,666,000 in 2023 from RMB 7,817,000 in 2022, an increase of approximately 36.5%[123] Assets and Liabilities - Total assets decreased to RMB 2,657,317,000 in 2023 from RMB 2,787,638,000 in 2022, reflecting a decline of 4.7%[5] - Total liabilities decreased significantly to RMB 654,603,000 in 2023 from RMB 826,116,000 in 2022, a reduction of 20.8%[5] - The company's net assets increased to RMB 2,002,714,000 in 2023, up from RMB 1,961,522,000 in 2022, indicating a growth of 2.1%[5] - The total liabilities as of December 31, 2023, were RMB 666,232 thousand, a decrease from RMB 841,877 thousand as of December 31, 2022[161] - The net assets decreased to RMB 1,305,312 thousand in 2023 from RMB 1,364,597 thousand in 2022, reflecting a decline of approximately 4.3%[25] Cash Flow - Operating cash flow for the year ended December 31, 2023, was RMB 330,362 thousand, a significant increase from RMB 38,508 thousand in 2022, resulting in a net cash inflow from operating activities of RMB 284,948 thousand compared to a net outflow of RMB 5,463 thousand in the previous year[8] - Cash generated from investment activities was RMB 96 thousand, recovering from a cash outflow of RMB 26 thousand in 2022, with proceeds from the sale of fixed assets amounting to RMB 124 thousand[8] - The total cash and cash equivalents increased by RMB 1,003 thousand, ending the year at RMB 17,478 thousand, compared to RMB 16,595 thousand at the beginning of the year[8] - Cash and cash equivalents rose to RMB 17,478,000 in 2023 from RMB 16,595,000 in 2022, an increase of 5.3%[5] - The company reported a significant increase in operating cash flow, indicating improved operational efficiency and profitability[8] Dividends and Shareholder Returns - The company has maintained a stable dividend policy, with past dividends approved amounting to RMB 47,200,000 for the year[6] - The company paid dividends to equity shareholders amounting to RMB 47,200 thousand, a decrease from RMB 59,000 thousand in 2022[8] - A cash dividend of RMB 0.04 per share was approved, totaling RMB 47.2 million, for the fiscal year ending December 31, 2023[138] Credit Risk and Loan Management - The company has established mechanisms to cover credit risks in its micro-lending business, including pre-loan assessments and post-loan monitoring[151] - The company’s credit risk management includes classifying loans into categories based on risk levels, such as normal, watch, substandard, doubtful, and loss[151] - The expected credit loss for loans without credit impairment was RMB 2,468,646 thousand for 2023, down from RMB 2,638,388 thousand in 2022, a decline of about 6.4%[113][114] - The expected credit loss for loans with credit impairment totaled RMB 124,485 thousand as of December 31, 2023, compared to RMB 134,342 thousand in 2022, a decrease of approximately 7.3%[113][114] - The impairment losses for loans and advances to customers were RMB 9,500,000 in 2023, a significant recovery from a loss of RMB 22,254,000 in 2022[85] Accounting Policies and Compliance - The company did not recognize any significant impact from the adoption of new accounting standards during the current reporting period[12] - The company has maintained compliance with all applicable Hong Kong Financial Reporting Standards, ensuring transparency and accuracy in financial reporting[9] - The company has not applied any new standards or interpretations that are not yet effective, ensuring consistency in accounting practices[12] - The company is actively reviewing its accounting policies and estimates, particularly regarding impairment of financial assets and long-term assets, to ensure accurate financial reporting[183][184] Market Position and Strategy - The company plans to continue focusing on micro-finance services and exploring new market opportunities to enhance growth[3] - The company maintained its status as the largest licensed micro-lending company in Zhejiang province based on registered capital as of December 31, 2023[199] - The company is actively exploring green lending models, focusing on ecological agriculture, new energy development, and other green industries[199] Employee and Management Compensation - Employee costs totaled RMB 17,641,000 in 2023, down from RMB 19,349,000 in 2022, which is a reduction of approximately 8.8%[86] - The total remuneration for the five highest-paid individuals was RMB 521,000 in 2023, up from RMB 508,000 in 2022, an increase of approximately 2.6%[92] - The total remuneration for key management personnel was RMB 3,330 thousand in 2023, up from RMB 3,260 thousand in 2022[177] Loans and Advances - As of December 31, 2023, total loans and advances to customers amounted to RMB 2,720,846 thousand, a decrease from RMB 2,863,756 thousand in 2022, reflecting a reduction of approximately 5%[103] - The net amount of loans and advances to customers after impairment losses was RMB 2,522,351 thousand in 2023, down from RMB 2,654,305 thousand in 2022, indicating a decline of about 5%[103] - The total overdue loans as of December 31, 2023, reached RMB 124,812 thousand, compared to RMB 133,586 thousand in 2022, showing a decrease of approximately 6.5%[107] - The total amount of loans issued by the company reached approximately RMB 30.7 billion as of December 31, 2023, down from RMB 33.9 billion in 2022, a decrease of about 8.9%[197] Taxation - Current tax expenses include estimated taxes payable or receivable for the current year and adjustments for prior years[62] - The income tax expense for the year was RMB 34,455,000, down from RMB 35,899,000 in 2022, representing a decrease of about 4.0%[87] - The deferred tax assets increased to RMB 61,671 million as of December 31, 2023, up from RMB 58,814 million in 2022, marking a rise of 3.0%[135]