Green Financing Initiatives - As of December 31, 2022, the company's green loan balance reached approximately RMB 569 million, accounting for about 20.8% of the total loan balance[17]. - The company has established stable partnerships with international investors, including GCPF and DEG, to enhance its green financing initiatives[17]. - The company is actively exploring the potential of green business and expanding its green loan market[17]. - The company has implemented a sustainable development strategy focusing on "Inclusive + Green" financing[17]. - The company is collaborating with IPC and PRA on multiple technical guidance projects to improve its green loan assessment and management systems[17]. - The company aims to leverage opportunities in green finance and deepen the implementation of green micro-loan pilot projects in 2023[30]. - The company is the first and only green micro-loan company pilot unit in Huzhou, benefiting from favorable local economic and ecological conditions[32]. - The company is actively exploring green loan models, focusing on sectors such as ecological agriculture and renewable energy[1]. - The company plans to integrate international green finance concepts with local market development to enhance its service offerings[30]. - The company is positioned to contribute to high-quality economic development in its region through its green finance initiatives[30]. - The company has established partnerships with DEG and GCPF to leverage international leading green loan concepts and technical support, aiming to develop more green loan products[179]. - The implementation of the "Green Microloan Company Construction and Evaluation Standards" in June 2020 is expected to deepen the exploration of potential green microloan clients[177]. - The company aims to better serve the agricultural sector and low-carbon small and micro enterprises, further increasing its market share[177]. Financial Performance - In 2022, the company issued loans totaling RMB 3,295.10 million, with interest income of RMB 250.46 million and a net profit of RMB 96.70 million, maintaining stable operational performance[29]. - The total amount of loans and advances provided to customers as of December 31, 2022, was RMB 2,863.76 million, an increase from RMB 2,687.16 million in the previous year[43]. - The company reported a non-performing loan ratio of 4.7% as of December 31, 2022, compared to 4.6% in the previous year[43]. - The company’s loan issuance strategy includes a significant focus on guarantee loans, which accounted for 97.9% of total loans as of December 31, 2022[39]. - The company’s impaired loan coverage ratio was 156% as of December 31, 2022, slightly down from 160% in the previous year[43]. - The number of loans issued to customers totaled 1,898 in 2022, a decrease from 1,972 in 2021[36]. - Interest income for 2022 was RMB 250,458 thousand, a decrease of 7.1% from RMB 269,629 thousand in 2021[1]. - The total profit attributable to equity shareholders for 2022 was RMB 136,968 thousand, up from RMB 131,587 thousand in 2021, representing a growth of 2.9%[1]. - The total assets as of December 31, 2022, were RMB 2,787,638 thousand, an increase of 5.2% from RMB 2,651,212 thousand in 2021[1]. - The total liabilities increased to RMB 826,116 thousand in 2022 from RMB 722,586 thousand in 2021, marking a rise of 14.4%[1]. - The total loan balance (excluding accrued interest) rose to RMB 2,840,822 thousand in 2022 from RMB 2,655,690 thousand in 2021, reflecting an increase of 6.9%[1]. - The average interest rate on loans decreased from 9.9% in 2021 to 9.0% in 2022, attributed to a higher proportion of green loans with lower rates[1]. - The overdue loans totaled RMB 133,586 thousand in 2022, compared to RMB 122,990 thousand in 2021, showing an increase of 8.6%[1]. - The total annual profit and comprehensive income for 2022 was RMB 96.7 million, down from RMB 127.7 million in 2021, representing a decline of about 24.3%[88]. - The net cash used in operating activities for 2022 was RMB 5.5 million, reflecting a pre-tax profit of RMB 132.6 million after adjustments for non-cash and non-operating items[109]. - The total amount of loans and advances to customers increased from RMB 2,687.2 million in 2021 to RMB 2,863.8 million in 2022, an increase of approximately 6.5%[113]. - The overdue loans as of December 31, 2022, amounted to RMB 133.6 million, representing about 4.7% of the total loans and advances, compared to RMB 123.0 million or 4.6% in 2021[99]. - Cash and cash equivalents decreased significantly from RMB 42.7 million in 2021 to RMB 16.6 million in 2022, a decline of approximately 61%[110]. - The company’s total loans and advances to customers net of impairment losses increased from RMB 2,489.5 million in 2021 to RMB 2,654.3 million in 2022, an increase of about 6.6%[113]. Risk Management and Governance - The company aims to integrate ESG factors into its loan decision-making process to enhance risk identification and management[17]. - The company has integrated ESG factors into its comprehensive risk management system to enhance non-financial risk control effectiveness[160]. - The company has maintained compliance with corporate governance codes regarding risk management and internal controls[159]. - The company has established a credit review committee responsible for assessing credit status for loans exceeding RMB 1 million[169]. - The company has a diverse board policy aimed at enhancing board effectiveness and corporate governance standards[154]. - The company’s independent non-executive director has extensive experience in finance, auditing, and accounting, contributing to the board's expertise[167]. - The board of directors held eight meetings during the year, with attendance records documented[172]. - The company continues to monitor foreign exchange exposure primarily from bank deposits and overseas borrowings denominated in euros, taking prudent measures to mitigate currency risk[173]. - The company reported current tax liabilities of RMB 43.0 million for the year ended December 31, 2022, slightly down from RMB 44.4 million in 2021[119]. - The company had no capital commitments as of December 31, 2022, consistent with the previous year[120]. Operational Efficiency - The company has maintained a strong commitment to sustainable practices in its business model[17]. - The company continues to focus on high-quality green development in its operations[17]. - The company has conducted ESG-related training to improve employee awareness and management capabilities regarding ESG risks[160]. - The company’s employee costs accounted for approximately 37.4% and 36.2% of total administrative expenses in 2021 and 2022, respectively, decreasing from RMB 21.6 million to RMB 19.3 million[71]. - Total administrative expenses decreased from RMB 57.7 million in 2021 to RMB 53.4 million in 2022, a reduction of approximately 7.9%[87]. - The total amount of accrued expenses and other payables decreased to RMB 21,280 thousand in 2022 from RMB 28,220 thousand in 2021, a reduction of 24.6%[125]. - The company’s interest and commission expenses for the years ending December 31, 2021, and December 31, 2022, were RMB 51.8 million and RMB 52.1 million, respectively[85]. - The company’s net cash used in investing activities for 2022 was RMB 26,000, primarily for the purchase of fixed assets[94]. - The company plans to maintain optimal liquidity levels to support operational capital needs and business expansion, with no immediate plans for significant external debt financing[90]. - The company’s pledge loans increased to RMB 19,990 thousand in 2022 from RMB 17,064 thousand in 2021, marking a growth of 11.3%[116]. - The company’s interest receivables decreased to RMB 22,934 thousand in 2022 from RMB 31,473 thousand in 2021, a decline of 27.3%[116]. - The company reported an annual audit service fee of RMB 2.10 million for 2022, an increase from RMB 1.95 million in 2021[162].

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，並明確表示概不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之股份有限公司） （股份代號：6866） 二零二二年年度業績公告 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」）欣然公佈，本公司 及其附屬公司（「本集團」）截至二零二二年十二月三十一日止年度根據香港會計師公會頒佈 之香港財務報告準則（「香港財務報告準則」）編製的經審核年度業績（「年度業績」）以及同期 比較數據。董事會及本公司審計委員會（「審計委員會」）已審閱並確認年度業績。 年度業績 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 （除另有註明外，以人民幣（「人民幣」）千元列值） 二零二二年 二零二一年 附註 人民幣千元 人民幣千元 利息收入 250,458 269,629 利息及佣金開支 ...

Financial Performance - For the nine months ended September 30, 2022, interest income was RMB 185,023,000, a decrease of 7.5% from RMB 199,731,000 in the same period of 2021[4] - Net interest income for the same period was RMB 146,756,000, down 10.3% from RMB 163,603,000 year-on-year[5] - The company's profit before tax decreased to RMB 106,465,000, representing a decline of 16.7% compared to RMB 127,801,000 in the previous year[7] - The net profit for the period was RMB 79,656,000, a decrease of 16.7% from RMB 95,607,000 in the same period last year[8] - The company’s tax expense for the period was RMB 26,809,000, a decrease of 16.5% from RMB 32,194,000 in the same period last year[7] Assets and Liabilities - Total assets as of September 30, 2022, were RMB 2,837,444,000, an increase of 7.0% from RMB 2,651,212,000 at the end of 2021[12] - Loans and advances to customers increased to RMB 2,692,379,000, up 8.1% from RMB 2,489,479,000 year-on-year[12] - Cash and cash equivalents decreased to RMB 31,000,000, down 27.4% from RMB 42,678,000 at the end of 2021[12] - Total liabilities increased to RMB 1,944,482,000, up 1.0% from RMB 1,928,626,000 at the end of 2021[12] Expenses - The company reported a decrease in administrative expenses to RMB 37,600,000, down 4.3% from RMB 39,302,000 in the previous year[6]

Financial Performance - The company reported a significant increase in micro-loan disbursements, reaching RMB 500 million in the first half of 2022, representing a 25% growth compared to the same period last year[19]. - The company anticipates a revenue growth of 15% for the full year 2022, driven by increased loan volume and improved operational efficiency[19]. - The company's profit and total comprehensive income for the six months ended June 30, 2021, and June 30, 2022, were RMB 67.0 million and RMB 57.8 million, respectively[54]. - The company reported a net profit of RMB 55,473 thousand for the six months ended June 30, 2022, compared to RMB 58,875 thousand for the same period in 2021, indicating a decrease of 4.1%[119]. - Total profit and comprehensive income for the period was RMB 57,804 thousand, a decline of 13.7% compared to RMB 67,039 thousand in the previous year[108]. - Net interest income decreased to RMB 97,944 thousand for the six months ended June 30, 2022, down from RMB 112,398 thousand for the same period in 2021, a decline of about 12.8%[44]. - Interest income for the six months ended June 30, 2022, was RMB 121,412 thousand, a decrease of 11.5% from RMB 137,475 thousand in the same period of 2021[108]. - The company's weighted average return on equity was 5.9% for the six months ended June 30, 2022, down from 6.5% for the year ended December 31, 2021[79]. Loan Portfolio and Quality - User base expanded to 150,000 active clients, a 30% increase year-over-year, indicating strong demand for micro-financing services[19]. - As of June 30, 2022, the total loan balance (excluding accrued interest) increased from RMB 2,655.7 million to RMB 2,762.5 million[22]. - The total amount of loans and advances provided (excluding accrued interest) reached RMB 2,762.5 million as of June 30, 2022[25]. - The total amount of loans and advances to customers as of June 30, 2022, was RMB 2,786.9 million, compared to RMB 2,687.2 million as of December 31, 2021[66]. - The overdue loans as of June 30, 2022, amounted to RMB 129.4 million, representing 4.6% of the total loans and advances to customers[67]. - The impairment loan ratio remains stable at 4.6% as of June 30, 2022, consistent with December 31, 2021[31]. - The provision for expected credit losses for the entire duration of credit impairment as of June 30, 2022, was RMB 205,958 thousand, compared to RMB 197,684 thousand as of December 31, 2021, indicating an increase of about 4.4%[185]. - The company’s loans and advances to customers increased to RMB 2,580,949 thousand, up from RMB 2,489,479 thousand, reflecting a growth of 3.67%[112]. Operational Developments - New product offerings include tailored loan packages for small and medium enterprises, expected to launch in Q3 2022[19]. - The company plans to expand its operations into two additional provinces by the end of 2022, which is projected to increase its client base by 40%[19]. - The company is exploring strategic partnerships to enhance its market presence in rural areas, targeting a 20% increase in market penetration by the end of 2022[19]. - Research and development efforts are focused on digital loan processing technologies, aiming to reduce approval times by 50%[19]. - A merger with a local fintech firm is under consideration to enhance service offerings and technological capabilities[19]. - The company is actively exploring sustainable green credit pathways and has been recognized as the first pilot green micro-lending company in Huzhou[101]. - Collaborations with DEG and GCPF aim to enhance the company's green loan product offerings and support sustainable financial development[101]. Financial Position and Assets - Total assets increased to RMB 2,775,239 thousand as of June 30, 2022, up from RMB 2,651,212 thousand as of December 31, 2021, representing a growth of 4.68%[112]. - Cash and cash equivalents increased from RMB 42.7 million as of December 31, 2021, to RMB 81.2 million as of June 30, 2022[62]. - The company’s total liabilities to total assets ratio increased to approximately 30.6% from 27.3%, indicating a higher leverage position[112]. - The total interest-bearing borrowings amounted to RMB 712,688 thousand as of June 30, 2022, up from RMB 644,973 thousand as of December 31, 2021[88]. - The company’s intangible assets decreased to RMB 236 thousand from RMB 519 thousand, a decline of 54.5%[112]. - The total accrued expenses and other payables decreased to RMB 17,011 thousand as of June 30, 2022, from RMB 28,220 thousand as of December 31, 2021, primarily due to a reduction in payable VAT[74]. Cost Management and Efficiency - The company has implemented cost-cutting measures that are expected to improve profit margins by 5% in the upcoming quarters[19]. - Administrative expenses decreased from RMB 28.9 million in the six months ended June 30, 2021, to RMB 26.9 million in the six months ended June 30, 2022, primarily due to a reduction in consulting and professional service fees and business development expenses by RMB 0.8 million[50]. - Employee costs accounted for approximately 33.9% and 35.2% of total administrative expenses for the six months ended June 30, 2021, and June 30, 2022, respectively[50]. Market and Regulatory Environment - The management remains optimistic about the macroeconomic environment, citing a favorable regulatory framework for micro-financing in China[19]. - The establishment of the China Microfinance Company Association is expected to enhance the role of microfinance companies in addressing financing issues for private enterprises[100]. - The company continues to monitor foreign exchange exposure primarily related to Euro-denominated deposits and borrowings, taking prudent measures to mitigate currency risks[96].

Financial Performance - The company reported a total revenue of RMB 100 million for the fiscal year, representing a year-over-year increase of 15%[22] - The company projects a revenue growth of 10% for the next fiscal year, aiming to reach RMB 110 million[22] - The company's pre-tax profit for 2021 was RMB 173.16 million, showing a stable performance compared to previous years[23] - The company's annual profit for the year ended December 31, 2021, was RMB 127.7 million, compared to RMB 117.8 million for the year ended December 31, 2020, reflecting a growth of approximately 8.4%[64] - Total profit increased to RMB 173.16 million from RMB 162.07 million, a growth of about 6.7%[182] - Net profit attributable to shareholders rose to RMB 116.49 million from RMB 110.24 million, an increase of approximately 5.1%[182] Client Acquisition and Market Presence - User data indicates that the company has served over 50,000 clients, with a 20% increase in new client acquisitions compared to the previous year[22] - The company is expanding its market presence by entering three new provinces in China, targeting a 25% increase in market share[22] - The company maintained a loan issuance market share of approximately 85.0% in Deqing County, with a total loan issuance of about RMB 39.2 billion among local small loan companies[31] Loan and Asset Management - In 2021, the company issued loans totaling RMB 3,328.83 million, with interest income of RMB 269.63 million and a net profit attributable to shareholders of RMB 116.49 million[26] - As of December 31, 2021, the company's total loan balance (excluding accrued interest) was RMB 2,655.69 million, an increase from RMB 2,557.67 million in 2020[34] - The total amount of loans and advances provided to customers reached RMB 2,687,163 thousand in 2021, up from RMB 2,587,651 thousand in 2020[41] - The total loans outstanding (excluding accrued interest) increased from RMB 2,557.7 million in 2020 to RMB 2,655.7 million in 2021[57] - The total amount of loans and advances to customers with a maturity of less than one year was RMB 2,559.8 million as of December 31, 2021, indicating a focus on short-term lending to mitigate risks[84] Green Initiatives and Social Responsibility - The company has established partnerships with international institutions to support its green business development, enhancing its brand influence and social responsibility[27] - The company is committed to contributing to China's green low-carbon development goals through better service to green loan customers[125] - The company has issued green loans to environmentally friendly projects, including ecological tourism and photovoltaic power generation, promoting regional green economic development[168] - The company has actively participated in social responsibility initiatives, including donating winter clothing to students and providing financial support to low-income families[168] Technological Development and Innovation - New product development includes the launch of a digital lending platform, expected to enhance user experience and operational efficiency[22] - The company has allocated RMB 5 million for research and development in new financial technologies over the next year[22] - The company aims to improve service quality and consumer rights protection through technological advancements[194] - The company is focused on developing green loan products to support sustainable financing initiatives[194] Governance and Management - The board of directors emphasized the importance of environmental, social, and governance (ESG) initiatives in future business strategies[22] - The company has a strong board with members experienced in finance, law, and management, enhancing governance and strategic decision-making[151] - The company emphasizes the importance of enhancing corporate governance to meet shareholder expectations[194] Financial Health and Ratios - The total assets of the company increased from RMB 2,604,379 thousand in 2019 to RMB 2,651,212 thousand in 2021[23] - The debt-to-equity ratio improved from 33.1% in 2020 to 32.3% in 2021, indicating a stronger equity position[103] - The non-performing loan ratio improved slightly from 4.8% in 2020 to 4.6% in 2021, indicating better asset quality[48] - The coverage ratio for provisions increased from 152% in 2020 to 160% in 2021, reflecting a stronger buffer against potential loan losses[48] Employee and Operational Insights - Administrative expenses totaled RMB 57.66 million for the year ended December 31, 2021, an increase from RMB 52.75 million in 2020, with employee costs rising to RMB 21.55 million[62] - Employee turnover rate for contract employees increased to 22.31% from 16.41%[182] - The company plans to enhance employee rights and benefits, including career development and training programs[194] Future Outlook and Strategic Plans - The company aims to enhance its green lending model and expand its market presence in response to regulatory policies and market conditions in 2022[28] - The company is actively pursuing new strategies in financial development and market expansion to drive growth and profitability[155] - The company is considering financing through the Zhejiang Financial Assets Exchange Center platform and may explore overseas financing options, but currently has no concrete plans for significant external debt financing in the short term[118]

Financial Performance - For the three months ended March 31, 2022, the company reported interest income of RMB 59,906,000 and interest and commission expenses of RMB 11,237,000, resulting in net interest income of RMB 48,669,000[4]. - The net profit for the three months ended March 31, 2022, was RMB 29,823,000, down from RMB 33,590,000 for the same period in 2021, representing a decrease of about 11.3%[4]. - The company’s income tax expense for the three months ended March 31, 2022, was RMB 10,216,000, compared to RMB 11,350,000 for the same period in 2021, reflecting a decrease of about 10%[4]. - The company’s administrative expenses for the three months ended March 31, 2022, were RMB 13,589,000, compared to RMB 14,010,000 for the same period in 2021, indicating a reduction of approximately 3%[4]. - The company’s non-controlling interests decreased to RMB 731,000 for the three months ended March 31, 2022, from RMB 1,826,000 for the same period in 2021, a decline of about 60%[4]. Assets and Liabilities - The company's total assets increased to RMB 2,712,604,000 as of March 31, 2022, compared to RMB 2,651,212,000 as of December 31, 2021, reflecting a growth of approximately 2.3%[6]. - The company’s total liabilities increased to RMB 1,958,449,000 as of March 31, 2022, compared to RMB 1,928,626,000 as of December 31, 2021, indicating a rise of approximately 1.5%[6]. - The company’s total equity as of March 31, 2022, was RMB 754,155,000, compared to RMB 722,586,000 as of December 31, 2021, representing an increase of approximately 4.4%[6]. Cash and Loans - The company’s cash and cash equivalents decreased to RMB 37,995,000 as of March 31, 2022, from RMB 42,678,000 as of December 31, 2021, a decline of about 11.5%[6]. - The company’s loans and advances to customers increased to RMB 2,552,472,000 as of March 31, 2022, compared to RMB 2,489,479,000 as of December 31, 2021, showing an increase of approximately 2.5%[6].

Company Operations and Market Position - The company operates primarily in the micro-finance sector in Deqing County, Huzhou City, Zhejiang Province, with a significant market share in this region[12]. - The economic development in Deqing has been strong, recognized as a "strong county in technology" and a "demonstration county for financial innovation" by the Zhejiang provincial government[12]. - The company is positioned to benefit from the national policy aimed at supporting high-quality development in Zhejiang Province, which includes a series of major decision-making deployments[12]. - Deqing has been identified as a key area for green financial reform and innovation, providing better opportunities for the company's exploration of green development[12]. - The company has been recognized as the first green microfinance company pilot unit in Huzhou since April 2020, enhancing its market position[97]. - The company actively explores sustainable green credit pathways and has developed new loan products to increase market penetration[97]. Financial Performance - As of June 30, 2021, the total loan balance (excluding accrued interest) increased from RMB 2,557.7 million to RMB 2,666.6 million, representing a growth of approximately 4.3%[14]. - The total amount of loans issued by the company and three other small loan companies in Deqing reached RMB 1.79 billion, with the company accounting for about 84.2% of this total[13]. - The company's leverage ratio increased from 2.17 to 2.26, indicating a higher level of borrowing relative to its registered capital of RMB 1.18 billion[17]. - The average interest rate on loans decreased from 12.2% to 10.2% due to increased support for small and micro enterprises amid the COVID-19 pandemic[18]. - The non-performing loan ratio rose slightly from 4.8% to 4.9%, with non-performing loans increasing from RMB 123.2 million to RMB 131.1 million[23]. - The provision coverage ratio remained stable at 153%, with total provisions for impairment losses increasing from RMB 187.5 million to RMB 201.1 million[23]. - The company reported a total profit and comprehensive income of RMB 67,039 thousand for the six months ended June 30, 2021, compared to RMB 67,563 thousand in the same period of 2020[104]. - Basic and diluted earnings per share for the period were RMB 0.05, down from RMB 0.06 in the previous year[104]. Loan Portfolio and Asset Quality - The company primarily serves small and micro enterprises, with 75.4% of loan amounts being RMB 1 million or less as of June 30, 2021[18]. - The total amount of loans and advances to customers (excluding accrued interest) was RMB 2,699.7 million as of June 30, 2021, compared to RMB 2,587.7 million at the end of 2020[19]. - The company experienced a decrease in average loan interest rates due to increased competition and policy measures to support small and micro enterprises during the COVID-19 pandemic[36]. - The overdue loans as of June 30, 2021, amounted to RMB 131.2 million, representing approximately 4.9% of the total loans and advances provided[64]. - The company’s total balance of loans and advances to customers with credit impairment was RMB 131,139,000 as of June 30, 2021, slightly down from RMB 123,223,000 as of December 31, 2020, indicating a decrease of approximately 6.5%[189]. - The company’s total balance of loans and advances to customers without credit impairment was RMB 2,531,113,000 as of June 30, 2021, reflecting a stable performance compared to the previous period[189]. Operational Efficiency and Costs - Administrative expenses totaled RMB 28.9 million for the six months ended June 30, 2021, compared to RMB 24.6 million in the same period of 2020, with employee costs rising to RMB 9.8 million from RMB 8.2 million[43][46]. - The effective tax rate for the six months ended June 30, 2021, was 26.2%, slightly up from 25.5% in the previous year, with income tax expenses of RMB 23.9 million compared to RMB 23.1 million[47]. - The company employed approximately 113 employees as of June 30, 2021, down from 121 employees as of December 31, 2020[87]. Cash Flow and Liquidity - The net cash used in operating activities for the six months ended June 30, 2021, was RMB 16.1 million, with a pre-tax profit of RMB 90.9 million[55]. - The company’s cash and cash equivalents totaled RMB 11.5 million as of June 30, 2021, down from RMB 78.2 million as of December 31, 2020[59]. - The net cash used in financing activities for the six months ended June 30, 2021, was RMB 50.9 million, primarily due to the repayment of interest-bearing loans[57]. - The company plans to maintain optimal liquidity levels to support operational needs and potential business expansion[49]. Future Outlook and Strategic Initiatives - The company is focused on expanding its market presence in the micro-finance sector, particularly in areas with strong economic growth potential[12]. - The company aims to leverage the favorable financial ecosystem in Huzhou to enhance its service offerings and customer base[12]. - The company plans to enhance its market expansion strategies and product development in the upcoming quarters, focusing on technology-driven solutions[148].

Financial Performance - Zuoli Kechuang Micro-finance Company reported a total revenue of RMB 300 million for the fiscal year, representing a year-on-year increase of 15%[6] - The company’s net profit for the year was RMB 50 million, which is a 10% increase compared to the previous year[6] - For the year ended December 31, 2020, the company issued loans totaling RMB 3,699.16 million, with interest income of RMB 304.95 million and net profit of RMB 117.82 million, representing a profit attributable to equity shareholders of RMB 110.24 million[21] - Total annual profit decreased from RMB 140.8 million in 2019 to RMB 117.8 million in 2020, a decline of approximately 16.3%[60] - Net interest income decreased to RMB 255.97 million in 2020 from RMB 270.80 million in 2019[49] - Total profit for 2020 was RMB 162.07 million, down 14.1% from RMB 188.48 million in 2019[175] - Net profit attributable to shareholders for 2020 was RMB 110.24 million, a decline of 15.9% compared to RMB 131.59 million in 2019[175] Loan and Asset Management - The total loan balance (excluding accrued interest) increased from RMB 2,482.7 million as of December 31, 2019, to RMB 2,557.7 million as of December 31, 2020[27] - The total loans and advances to customers increased from RMB 2,482,713 thousand in 2019 to RMB 2,557,669 thousand in 2020, representing a growth of 3.0%[30] - The total loans and advances to customers increased to RMB 2,586.65 million in 2020 from RMB 2,520.04 million in 2019[43] - The company maintained a significant portion of guaranteed loans, which accounted for approximately 97.5% of total loans and advances as of December 31, 2020[80] - The overdue loan balance increased significantly to RMB 1,235.32 million from RMB 710.38 million, resulting in an overdue loan rate of 4.8% compared to 2.8%[47] - The total expected credit loss for loans and advances was RMB 187,537 thousand as of December 31, 2020[40] Market Expansion and Strategy - User data indicates that the total number of active borrowers increased by 20% to 15,000 users[6] - The company plans to expand its market presence by entering two new provinces in China by the end of the next fiscal year[6] - The company has set a performance guidance for the next fiscal year, targeting a revenue growth of 20%[6] - A strategic partnership with local agricultural cooperatives is expected to increase loan disbursement in rural areas by 25%[6] - The company is exploring potential acquisition opportunities to enhance its service offerings and market share[6] Risk Management and Compliance - The management emphasized a commitment to maintaining a non-performing loan ratio below 2%[6] - The impaired loan ratio increased to 4.8% as of December 31, 2020, compared to 4.3% as of December 31, 2019[43] - The provision coverage ratio improved to 152% in 2020 from 145% in 2019, indicating a stronger reserve against potential loan losses[43] - The company focused on serving clients with higher repayment capabilities, leading to a strategic adjustment in interest rates[31] - The company emphasizes compliance with regulatory policies and risk control to maintain financial order and governance[187] Green Finance Initiatives - The company was recognized as the first pilot unit for green small loans in Huzhou City, contributing to the establishment of national standards for green small loan companies[22] - The company developed a green loan information management system, which received national software copyright, enhancing its technological capabilities[22] - The company plans to further explore green business opportunities and enhance its green small loan brand in response to national carbon neutrality goals and the new development pattern[22] - The company has implemented measures to avoid lending to high-energy consumption and high-pollution enterprises, promoting green loans for eco-friendly projects[159] - The company has a commitment to low-carbon operations and has established internal regulations to conserve energy and resources[159] Operational Efficiency - Research and development efforts are focused on enhancing the digital loan application process, aiming to reduce processing time by 30%[6] - Administrative expenses totaled RMB 52.75 million in 2020, down 11.8% from RMB 59.76 million in 2019[58] - Employee costs decreased from RMB 22.90 million in 2019 to RMB 18.44 million in 2020, representing a reduction of approximately 19.5%[58] - The company’s net cash from operating activities was RMB 148.84 million in 2020, compared to RMB 92.68 million in 2019, indicating a significant increase of 60.6%[64] Social Responsibility - The company actively participates in charitable and donation activities to support community welfare[187] - A total of RMB 6.25 million in loans was provided to the education system, supporting impoverished students with interest-free loans[160] - The company has a history of providing loans totaling RMB 670,000 to support entrepreneurship for disadvantaged groups[160] - The company has been involved in various subsidiaries, enhancing its operational capabilities in micro-lending[125] Management and Governance - The company has a strong management team with extensive experience in finance and operations, including Hu Fangfang as CFO and Yang as General Manager[125] - The company is committed to maintaining strong governance and oversight through its board and committees[118] - The company has established various committees, including the Audit Committee and the Nomination Committee, to ensure accountability in decision-making processes[160]

Loan Portfolio and Financial Performance - As of June 30, 2020, the total amount of loans issued by the group and three other microfinance companies in Deqing reached RMB 1.92 billion, with the group accounting for approximately 80.6% of this total[16]. - The outstanding loan balance (excluding accrued interest) for the group and the three other microfinance companies was RMB 3.3 billion as of June 30, 2020, with the group holding about 75.7% of this balance[16]. - As of June 30, 2020, the total loan amount provided to customers (excluding accrued interest) was RMB 2,497.3 million, remaining stable compared to RMB 2,482.7 million as of December 31, 2019[18]. - The total amount of loans and advances provided to customers was RMB 2,526.5 million as of June 30, 2020, slightly up from RMB 2,520.0 million as of December 31, 2019[24]. - The company's overdue loans increased to RMB 123.1 million as of June 30, 2020, accounting for approximately 4.9% of the total loans and advances, compared to 2.8% as of December 31, 2019[56]. - The total outstanding loans and advances to customers amounted to RMB 2,685,238 thousand as of June 30, 2020, with a significant portion being overdue loans of RMB 123,064 thousand[190]. Interest Rates and Income - The average loan interest rate decreased from 12.69% to 12.16% due to the impact of the COVID-19 pandemic and government support policies for small and micro enterprises[20]. - Total interest income for the six months ended June 30, 2020, was RMB 156.5 million, down from RMB 157.9 million in 2019, reflecting a decrease of about 0.9%[33]. - Net interest income for the six months ended June 30, 2020, was RMB 128.9 million, a decrease from RMB 134.2 million for the same period in 2019, representing a decline of approximately 2.4%[33]. - Interest income from loans and advances to customers was RMB 156,325 thousand for the six months ended June 30, 2020, slightly down from RMB 157,755 thousand in the same period of 2019[114]. Impairment and Credit Quality - The non-performing loan ratio increased to 4.9% as of June 30, 2020, compared to 2.8% as of December 31, 2019[24]. - The total provision for impairment losses was RMB 168,468 thousand, compared to RMB 155,461 thousand in the previous year, indicating an increase of about 8.1%[134]. - Total impairment losses for the six months ended June 30, 2020, amounted to RMB 21,570 thousand, an increase of 77.1% compared to RMB 12,204 thousand in the same period of 2019[119]. - The expected credit loss for loans with no credit impairment over the entire duration was RMB 51,280 thousand as of June 30, 2020, compared to RMB 158 thousand as of December 31, 2019[146]. Operational and Financial Position - The company primarily operates in Deqing County and Binjiang District of Hangzhou, with a significant market share derived from Deqing County[15]. - As of June 30, 2020, total assets decreased to RMB 2,494,136 thousand from RMB 2,527,413 thousand, representing a decline of approximately 1.3%[96]. - Total liabilities decreased to RMB 688,268 thousand from RMB 781,108 thousand, reflecting a reduction of approximately 11.9%[96]. - The company's equity attributable to shareholders increased to RMB 1,702,076 thousand from RMB 1,636,968 thousand, marking an increase of about 4%[100]. Cash Flow and Financing Activities - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 129.8 million, reflecting a pre-tax profit of RMB 90.7 million after adjustments for non-cash and non-operating items[47]. - The net cash used in financing activities for the six months ended June 30, 2020, was RMB 160.2 million, primarily due to the repayment of interest-bearing loans amounting to RMB 239.8 million[51]. - Cash and cash equivalents totaled RMB 24.2 million as of June 30, 2020, down from RMB 55.3 million as of December 31, 2019, indicating a decrease of approximately 56.2%[52]. Risk Management and Regulatory Environment - The company faces credit risk primarily from its microfinance business, with mechanisms in place for pre-loan assessment, credit approval, and post-loan monitoring[183]. - The company has established a risk management policy to address liquidity and interest rate risks in its operations[181]. - The establishment of the China Microfinance Company Association is expected to benefit the microfinance industry through improved regulatory support[84]. Employee and Administrative Expenses - The company employed approximately 120 employees as of June 30, 2020, down from 128 employees as of December 31, 2019[75]. - Administrative expenses totaled RMB 24.6 million in 2020, down from RMB 27.2 million in 2019, reflecting a decrease of about 9.5%[40]. Dividends and Capital Management - The company did not declare any dividends for the six months ending June 30, 2020, compared to RMB 147.5 million (RMB 0.125 per share) for the same period in 2019[171]. - The company approved a cash dividend of RMB 20 million for the six months ending June 30, 2020, attributed to the fiscal year ending December 31, 2019[172]. - The company actively manages its capital structure to balance high shareholder returns with acceptable levels of borrowing and good capital condition[178].

Financial Performance - Zuoli Kechuang Micro-finance Company Limited reported a revenue of RMB 4,326,250 (approximately HKD 4,975,187.5) from the transfer of creditor rights[12]. - For the year ended December 31, 2019, the company achieved a loan scale of RMB 4,131.84 million and interest income of RMB 320.35 million, with a net profit of RMB 140.79 million[39]. - The company's profit attributable to equity shareholders was RMB 131.59 million in 2019, compared to RMB 136.97 million in 2018, reflecting a slight decrease[39]. - Net interest income for the year ended December 31, 2019, was RMB 270.8 million, down from RMB 294.1 million in 2018[72]. - Annual profit for the years ended December 31, 2018, and 2019 was RMB 142.9 million and RMB 140.8 million, respectively[83]. - Total profit for 2019 was CNY 18,848,000, a slight decline from CNY 19,121,000 in 2018, indicating a decrease of about 1.4%[196]. - Net profit attributable to shareholders for 2019 was CNY 13,159,000, compared to CNY 13,697,000 in 2018, reflecting a decrease of approximately 3.9%[196]. - The non-performing loan ratio increased to 4.25% in 2019 from 3.02% in 2018, indicating a deterioration in asset quality[196]. Asset and Liability Management - The total assets of the company increased from RMB 2,427.47 million in 2018 to RMB 2,527.41 million in 2019, while total liabilities rose from RMB 674.45 million to RMB 781.11 million during the same period[37]. - The asset-liability ratio increased to 40.4% as of December 31, 2019, up from 32.6% in 2018, primarily due to an increase in interest-bearing borrowings[116]. - The balance of interest-bearing borrowings increased from RMB 580.1 million as of December 31, 2018, to RMB 716.0 million as of December 31, 2019[87]. - Total liabilities rose to CNY 78,111,000 in 2019, compared to CNY 67,445,000 in 2018, representing an increase of approximately 15.8%[196]. Loan Portfolio and Risk Management - The total loan balance (excluding accrued interest) increased from RMB 2,396.4 million at the end of 2018 to RMB 2,482.7 million at the end of 2019, indicating a growing demand for financing[46]. - The total amount of loans and advances net of impairment losses was RMB 2,364,579 thousand as of December 31, 2019[60]. - The impaired loan ratio increased to 4.3% as of December 31, 2019, compared to 3.0% on December 31, 2018[64]. - The total amount of impaired loans rose from RMB 72.4 million to RMB 107.2 million, primarily due to an increase in loan balances and deteriorating operating conditions for certain borrowers[68]. - The overdue loan balance decreased to RMB 71.0 million as of December 31, 2019, from RMB 76.1 million a year earlier, with the overdue loan ratio improving to 2.8% from 3.2%[70]. Market Strategy and Expansion - The company is focused on expanding its market presence in rural areas, targeting clients involved in agricultural businesses[5]. - The company plans to deepen innovative product design and optimize customer quality to ensure stable and orderly development in the future[39]. - The company aims to provide flexible financing solutions through rapid and comprehensive loan assessment and approval processes[46]. - The company plans to focus on serving customers with higher repayment capabilities, which may lead to lower interest rates for these clients[50]. - The company anticipates benefiting from regulatory support for microfinance companies in China, as highlighted by recent government discussions on financing issues for private enterprises[138]. - The company plans to leverage its capital base and innovate loan products to increase market penetration and strengthen competitive advantages in the Deqing County market[140]. Governance and Management - The company is led by Executive Director and Chairman Yu Yin, who is responsible for daily management and overall corporate strategy[145]. - The company has a strong management team with extensive experience in finance and operations, including CFO Hu Fangfang, who has a background in financial management and auditing[154]. - The company is focused on maintaining a strong governance structure with experienced directors overseeing its operations[145]. - The company has a diverse board with members possessing expertise in finance, law, and management, enhancing its governance structure[164]. - The independent non-executive directors contribute to the audit and remuneration committees, ensuring compliance and accountability[165]. Social Responsibility and Compliance - The company has been recognized for its efforts in social responsibility, including donations and support for vulnerable groups[181]. - The company is committed to green finance, issuing loans to support environmental initiatives and developing eco-friendly loan products for new energy and ecological agriculture[180]. - The company emphasizes compliance with regulations and has established various committees, including an audit committee and a loan review committee, to ensure accountability and protect shareholder interests[181]. - The company actively responds to national policies supporting agriculture and rural development, addressing financing challenges faced by local SMEs[180].