Group 1 - The core point of the article is that Zhaoli Microfinance (06866.HK) reported a decrease in net interest income and profit for the six months ending June 30, 2025, compared to the same period last year [1] Group 2 - The company's net interest income for the period was 73.82 million RMB, down from 81.43 million RMB in the same period last year [1] - The profit for the period was 33.52 million RMB, a decline from 46.63 million RMB in the previous year [1]

Core Viewpoint - Zhaoli Small Loan (06866) reported a decrease in net interest income and profit for the six months ending June 30, 2025, indicating challenges in maintaining profitability amid declining loan rates [1] Financial Performance - The company achieved net interest income of 73.819 million yuan, a year-on-year decrease of 9.35% [1] - Profit attributable to equity shareholders was 31.903 million yuan, down 29% year-on-year [1] - Earnings per share stood at 0.03 yuan [1] Loan Rates - The average loan interest rates for the periods ending June 30, 2024, and June 30, 2025, were 7.6% and 6.8%, respectively, showing a decline [1] - The decrease in average loan rates was primarily due to the continuous reduction in loan rates by banks and industry peers [1] - The company adjusted its average loan rates downward to ensure asset quality in response to market conditions [1]

Core Points - Zhaoli Microfinance (06866) reported a net interest income of 73.819 million yuan for the six months ending June 30, 2025, representing a year-on-year decrease of 9.35% [1] - The profit attributable to equity shareholders was 31.903 million yuan, down 29% year-on-year, with earnings per share at 0.03 yuan [1] - The average loan interest rates for the periods ending June 30, 2024, and June 30, 2025, were 7.6% and 6.8% respectively, indicating a decline in average loan rates due to decreasing lending rates from banks and peers [1]

[Financial Statements](index=2&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Net profit for the six months ended June 30, 2025, decreased by 28.1% due to lower interest income and other net losses, despite impairment reversals | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | 73,819 | 81,431 | -9.4% | | Impairment Losses | 4,594 | (12,528) | N/A (Shift from Loss to Gain) | | Profit Before Tax | 45,963 | 64,509 | -28.7% | | **Profit and Total Comprehensive Income for the Period** | **33,522** | **46,626** | **-28.1%** | | Profit Attributable to Equity Holders of the Company | 31,903 | 44,940 | -29.0% | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.04 | -25.0% | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased due to reduced loans, while total liabilities significantly declined and net assets slightly increased | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Period Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **2,519,203** | **2,578,519** | **-2.3%** | | Loans and Advances to Customers | 2,402,371 | 2,462,054 | -2.4% | | **Total Liabilities** | **459,556** | **537,408** | **-14.5%** | | Interest-bearing Borrowings | 412,554 | 488,287 | -15.5% | | **Total Equity** | **2,059,647** | **2,041,111** | **+0.9%** | [Consolidated Statement of Changes in Equity](index=5&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to equity holders increased, driven by period profit and partially offset by distributed dividends - Profit and total comprehensive income for the period was **RMB 33.522 million**[7](index=7&type=chunk) - Approved and distributed dividends attributable to prior years totaled **RMB 14.986 million**[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash from operating activities increased by 9.6% to RMB 106 million, while net cash outflow from financing activities expanded | Cash Flow Activities | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 105,964 | 96,685 | | Net Cash from Investing Activities | — | 58 | | Net Cash Used in Financing Activities | (106,195) | (89,466) | | **Net (Decrease) / Increase in Cash and Cash Equivalents** | **(231)** | **7,277** | | Cash and Cash Equivalents at Period-End | 10,284 | 24,755 | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=7&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) This interim financial report is prepared under HKAS 34 and reviewed by KPMG, with consistent accounting policies - Interim financial report was prepared in accordance with Hong Kong Accounting Standard 34[9](index=9&type=chunk) - The report is unaudited but was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[10](index=10&type=chunk) [Analysis of Key Financial Items](index=8&type=section&id=Analysis%20of%20Key%20Financial%20Items) This section details key income statement and balance sheet items, including a 9.4% drop in net interest income and a net impairment reversal [3 Net Interest Income](index=8&type=section&id=3%20Net%20Interest%20Income) Net interest income for H1 2025 decreased by 9.4% to RMB 73.819 million, primarily due to reduced interest income from customer loans | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income from Customer Loans | 90,211 | 102,550 | | Interest Expense from Non-Bank Borrowings | (15,822) | (20,556) | | **Net Interest Income** | **73,819** | **81,431** | [5 Impairment Losses](index=9&type=section&id=5%20Impairment%20Losses) A net impairment loss reversal of RMB 4.594 million was recorded, a significant contrast to the prior period's provision, indicating improved asset quality - For the six months ended June 30, 2025, impairment losses were a net reversal of **RMB 4.594 million**, compared to a provisioned loss of **RMB 12.528 million** in the same period last year[15](index=15&type=chunk) [10 Loans and Advances to Customers](index=11&type=section&id=10%20Loans%20and%20Advances%20to%20Customers) Net loans and advances to customers decreased by 2.4% to RMB 2.402 billion, with guaranteed loans comprising 98.0% and overdue loans slightly decreasing 按性質分析 | Loan Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Corporate Loans | 1,138,250 | 1,219,180 | | Retail Loans | 1,410,309 | 1,395,888 | | Internet Micro-lending | 23,000 | 25,466 | | **Total Loans (excluding interest)** | **2,571,559** | **2,640,534** | 按抵押物類型分析 | Collateral Type | June 30, 2025 (%) | December 31, 2024 (%) | | :--- | :--- | :--- | | Credit Loans | 1.0% | 1.1% | | Guaranteed Loans | 98.0% | 97.9% | | Mortgage Loans | 0.1% | 0.1% | | Pledged Loans | 0.9% | 0.9% | - Total overdue loans decreased from **RMB 105 million** at the end of 2024 to **RMB 99.59 million** as of June 30, 2025[23](index=23&type=chunk) [14 Interest-bearing Borrowings](index=19&type=section&id=14%20Interest-bearing%20Borrowings) Total interest-bearing borrowings decreased by 15.5% to RMB 413 million, primarily due to the repayment of Euro-denominated borrowings | Borrowing Source | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Borrowings | 25,028 | 25,028 | | Euro-denominated Borrowings | 387,526 | 463,259 | | **Total** | **412,554** | **488,287** | [18 Financial Risk Management](index=22&type=section&id=18%20Financial%20Risk%20Management) The group faces credit, liquidity, interest rate, and currency risks, with credit risk managed through strict controls and currency risk significantly reduced [18(a) Credit Risk](index=22&type=section&id=18%28a%29%20Credit%20Risk) Credit risk primarily arises from micro-lending, managed by a comprehensive risk mechanism, with low concentration despite geographical focus in Zhejiang Province - The group has established a credit risk management mechanism covering key operational stages of loan business, including pre-loan assessment, credit approval, and post-loan monitoring[44](index=44&type=chunk) - As of June 30, 2025, loan exposure to the largest customer and top five customers was **1.91%** and **7.17%** respectively, with manageable concentration[48](index=48&type=chunk) [18(b) Liquidity Risk](index=24&type=section&id=18%28b%29%20Liquidity%20Risk) Management ensures sufficient cash reserves by monitoring liquidity needs, with short-term liquidity appearing strong based on contractual cash flow analysis - The report provides a maturity analysis of financial assets and liabilities based on contractual undiscounted cash flows to assess liquidity risk[51](index=51&type=chunk) [18(c) Interest Rate Risk](index=25&type=section&id=18%28c%29%20Interest%20Rate%20Risk) The group's interest rate risk is extremely low as most financial assets and liabilities are fixed-rate, limiting market rate fluctuation impact - The group's loans and advances to customers and interest-bearing borrowings are all at fixed interest rates, resulting in very low interest rate exposure[54](index=54&type=chunk) - Sensitivity analysis shows that a general increase of **50 basis points** in interest rates is expected to increase net profit by approximately **RMB 38 thousand** over the next 12 months[55](index=55&type=chunk) [18(d) Currency Risk](index=26&type=section&id=18%28d%29%20Currency%20Risk) Currency risk, primarily from Euro-denominated borrowings, significantly reduced as exposure decreased from RMB 125 million to RMB 42.25 million Foreign Currency Exposure (Euro) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest-bearing Borrowings | (42,250) | (124,527) | [20 Related Party Transactions](index=29&type=section&id=20%20Related%20Party%20Transactions) Key related party transactions include guarantees for bank borrowings by the Chairman and property leases from Zuoli Holding Group, all on normal commercial terms - The Chairman of the Board and other related parties provided guarantees for the group totaling **RMB 57.50 million** in borrowings[65](index=65&type=chunk)[67](index=67&type=chunk)[108](index=108&type=chunk) - The group leased properties from related party Zuoli Holding Group Co., Ltd. and paid for utilities and catering expenses[66](index=66&type=chunk)[69](index=69&type=chunk) [Management Discussion and Analysis](index=31&type=section&id=Management%20Discussion%20and%20Analysis) [Industry Overview](index=31&type=section&id=Industry%20Overview) The company benefits from policy advantages in Zhejiang Province, holding a significant regional leading position as Huzhou's first green micro-lending company - The company seized opportunities from Zhejiang Province's common prosperity demonstration zone and Huzhou City's National Green Finance Reform and Innovation Pilot Zone, becoming Huzhou's first green micro-lending company[70](index=70&type=chunk) - In its main market, Deqing County, the group's loan balance accounted for approximately **86.8%** of the total balance of local micro-lending companies, holding an absolute advantage in market share[71](index=71&type=chunk) [Business Overview](index=32&type=section&id=Business%20Overview) The company, Zhejiang's largest licensed micro-lender by registered capital, saw total loan balance decrease and average interest rate decline due to competition, yet asset quality improved [Loan Portfolio Analysis](index=32&type=section&id=Loan%20Portfolio%20Analysis) Total loan balance decreased by 2.6% to RMB 2.572 billion, with leverage ratio declining and average interest rate dropping to 6.8% due to market competition | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Loans (RMB thousands) | 2,571,559 | 2,640,534 | | Leverage Ratio | 2.18 | 2.24 | - For the six months ended June 30, 2025, the average loan interest rate was **6.8%**, a decrease from **7.6%** in the same period last year, to cope with market competition and ensure asset quality[73](index=73&type=chunk)[81](index=81&type=chunk) [Asset Quality](index=35&type=section&id=Asset%20Quality) Asset quality indicators improved, with impaired loan ratio decreasing to 3.8% and provision coverage ratio increasing to 191%, enhancing risk resilience | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Impaired Loan Ratio | 3.8% | 3.9% | | Provision Coverage Ratio | 191% | 185% | | Overdue Loan Ratio | 3.8% | 4.0% | - Total overdue loans decreased from **RMB 105 million** at the end of 2024 to **RMB 99.60 million** As of August 15, 2025, **RMB 2.50 million** had been recovered[79](index=79&type=chunk) [Financial Overview](index=36&type=section&id=Financial%20Overview) Performance faced pressure due to reduced net interest income and other net losses, despite a positive contribution from impairment loss reversals [Operating Results](index=36&type=section&id=Operating%20Results) Profit for the period decreased by 28.1% to RMB 33.50 million, primarily due to lower net interest income and other net losses, despite impairment reversals - Net interest income decreased primarily due to reduced loan balances and a decline in average loan interest rate from **7.6%** to **6.8%**[81](index=81&type=chunk) - Other net income turned into a loss, primarily due to a **RMB 13.30 million** reduction in government subsidies and a **RMB 15.60 million** decrease in exchange gains[83](index=83&type=chunk) - Impairment losses shifted from a provision of **RMB 12.50 million** in the same period last year to a reversal of **RMB 4.60 million** this period, positively contributing to profit[84](index=84&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company relies on equity, borrowings, and operating cash flow, with net cash from operations at RMB 106 million and reduced interest-bearing borrowings - For the six months ended June 30, 2025, net cash from operating activities was **RMB 106 million**[90](index=90&type=chunk) - Net cash outflow from financing activities was **RMB 106 million**, primarily used for repayment of **RMB 187 million** in interest-bearing borrowings[91](index=91&type=chunk) [Key Financial Ratios](index=44&type=section&id=Key%20Financial%20Ratios) Key financial ratios indicate stable profitability and optimized financial structure, with annualized ROE at 3.2% and debt-to-asset ratio significantly decreasing | Metric | Six Months Ended June 30, 2025 | For the Year Ended December 31, 2024 | | :--- | :--- | :--- | | Weighted Average Return on Equity (%) | 3.2 (annualized) | 3.2 | | Average Return on Assets (%) | 2.6 (annualized) | 2.5 | | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Asset Ratio (%) | 20.1 | 24.1 | [Prospects](index=47&type=section&id=Prospects) The company will leverage policy support and its unique advantages to deepen green credit business, aiming for inclusive finance and sustainable development - The company will seize opportunities from Zhejiang Province's common prosperity demonstration zone and Huzhou's 'Two Mountains' concept to explore a sustainable green credit path[122](index=122&type=chunk) - The company has partnered with international institutions such as DEG and GCPF to introduce green loan concepts and technical support[123](index=123&type=chunk) - The company officially became Huzhou City's first green micro-lending company in May 2023[123](index=123&type=chunk) [Other Information](index=49&type=section&id=Other%20Information) [Corporate Governance](index=49&type=section&id=Corporate%20Governance) The company is committed to high corporate governance standards and fully complied with the Corporate Governance Code during the reporting period - During the reporting period, the company fully complied with the Corporate Governance Code[125](index=125&type=chunk) [Dividend Policy](index=49&type=section&id=Dividend%20Policy) The Board decided not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year's policy - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[128](index=128&type=chunk) [Other Disclosures](index=49&type=section&id=Other%20Disclosures) No significant post-period events or listed securities transactions occurred, though a major shareholder pledged 27.33% of the company's domestic shares in April 2025 - On April 23, 2025, major shareholder Puhua Energy pledged **322,540,960 shares** of domestic shares, representing **27.33%** of the company's total issued share capital[130](index=130&type=chunk) - As of the end of the reporting period and the announcement date, there were no significant post-period events[129](index=129&type=chunk)

Core Viewpoint - Zhaoli Microfinance (06866.HK) has scheduled a board meeting on August 15, 2025, to consider and approve the unaudited consolidated interim results for the six months ending June 30, 2025, and to discuss the potential declaration of an interim dividend, if any [1] Group 1 - The board meeting will focus on the financial performance of the company and its subsidiaries for the first half of 2025 [1] - The meeting will also address the potential distribution of an interim dividend [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並表明不會就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔 任何責任。 佐 力 科 創 小 額 貸 款 股 份 有 限 公 司 (Zuoli Kechuang Micro-finance Company Limited * ) （ 於中華人民共和國註冊成立的股份有限公司） （股份代號：6866） 董事會會議召開日期 承董事會命 佐力科創小額貸款股份有限公司 董事長 俞寅 香港，二零二五年八月五日 於本公告日期，執行董事為俞寅先生、鄭學根先生、楊晟先生及胡芳芳女士；非執行董事為潘忠敏先生；以 及獨立非執行董事為陳健民先生、趙旭強先生及楊婕女士。 * 僅供識別 佐力科創小額貸款股份有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈，本公司 謹訂於二零二五年八月十五日（ 星期五 ）舉行董事會會議，以（ 其中包括 ）考慮及批准本公司 及其附屬公司截至二零二五年六月三十日止六個月之未經審核綜合中期業績及其刊發，及 考慮派付中期股息（ 如有）。 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 佐力科創小額貸款股份有限公司 (於中華人民共和國註冊成立之股份有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明) | | 於香港聯交所上市 (註1) | | 否 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | N/A | 說明 | 內資股 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 880,000,000 RMB | | | 1 RMB | | 880,000,000 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 880,000,000 RMB | | | 1 RMB | | 880,000,0 ...

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]