Business Focus and Strategy - Baiying Holdings Group Limited focuses on providing equipment financing solutions primarily to small and medium-sized enterprises, individual entrepreneurs, and reputable large enterprises[12]. - The company remains focused on developing its financing leasing and factoring businesses while actively seeking opportunities to expand into other business areas[12]. - Baiying Holdings Group Limited's strategy includes direct sales through factory stores and e-commerce platforms to further engage potential customers[12]. - The company has ventured into the paper products sales and supply chain industry since 2021, collaborating with quality partners to leverage their resources and industry experience[87]. - The company plans to focus on sales and marketing efforts in the Minnan market in the next fiscal year to increase product awareness and promote its brand[86]. Financial Performance - Revenue decreased from RMB 17.9 million for the six months ended June 30, 2022, to RMB 16.9 million for the six months ended June 30, 2023, representing a decline of approximately 5.6%[13]. - Loss reduced from RMB 13.4 million for the six months ended June 30, 2022, to RMB 7.5 million for the six months ended June 30, 2023, indicating an improvement of approximately 44%[13]. - Total revenue for the six months ended June 30, 2023, was RMB 16,864,919, a decrease of 5.95% compared to RMB 17,938,475 for the same period in 2022[116]. - The company reported a net loss of RMB 7,468,480 for the six months ended June 30, 2023, an improvement from a net loss of RMB 13,370,862 in the same period of 2022, representing a 44.0% reduction in losses[116][118]. - Basic and diluted loss per share for the period was RMB 2.77, compared to RMB 4.99 for the same period in 2022[116]. Revenue Breakdown - Financing services generated revenue of RMB 4.3 million for the six months ended June 30, 2023, contributing 25.4% to total revenue[13]. - Revenue from vinegar and other condiments was RMB 2.1 million for the six months ended June 30, 2023[13]. - Revenue from packaging and paper products trading was RMB 10.4 million for the six months ended June 30, 2023[13]. - Revenue from factoring services was RMB 2.6 million for the six months ended June 30, 2023, accounting for 15.2% of total revenue[21]. - The revenue from the sale of vinegar and other condiments was RMB 2.1 million, accounting for 12.7% of total revenue[28]. Assets and Liabilities - Total non-current assets decreased from RMB 116.0 million as of December 31, 2022, to RMB 104.8 million as of June 30, 2023[62]. - The company's total liabilities decreased from RMB 63.9 million as of December 31, 2022, to RMB 49.2 million as of June 30, 2023, indicating improved financial stability[62]. - Total current assets decreased from RMB 203.0 million as of December 31, 2022, to RMB 192.0 million as of June 30, 2023, primarily due to a decrease in financial assets at fair value through profit or loss by RMB 14.4 million, partially offset by an increase in inventory by RMB 2.7 million[63]. - The company's equity attributable to shareholders was RMB 245,283,543 as of June 30, 2023, down from RMB 252,786,711 at the end of 2022[122]. Cash Flow and Investments - Cash and cash equivalents decreased from RMB 70.1 million at the beginning of the period to RMB 1.7 million at the end of the period for the six months ended June 30, 2023[57]. - Net cash used in operating activities was RMB 70.9 million for the six months ended June 30, 2023, primarily due to operating losses and changes in working capital[58]. - Net cash generated from investing activities was RMB 13.2 million for the six months ended June 30, 2023, mainly from proceeds from asset sales[59]. - The company incurred a loss of RMB 70,825,049 in cash used in operating activities for the six months ended June 30, 2023, compared to RMB 21,121,627 for the same period in 2022, reflecting increased operational costs[127]. Regulatory and Compliance - The company acknowledges the higher investment risks associated with being listed on the GEM market, which primarily consists of small and medium-sized enterprises[3]. - The company confirmed compliance with the corporate governance code as per GEM Listing Rules during the reporting period[106]. - The company has adopted a code of conduct for securities trading, ensuring compliance with GEM Listing Rules[109]. - The board does not recommend any interim dividend for the six months ending June 30, 2023[102]. Market and Production Developments - As of June 30, 2023, Qiaoxin has commenced orderly production and sales of its self-produced products under the "Qiaoxin 1950" brand, including various types of vinegar[12]. - The company has established a production capacity of 10,000 tons of Yongchun vinegar annually, with the first phase of the factory's fixed asset investment largely completed[85]. - The company has expanded its sales channels across six provinces in China, including traditional retail stores, supermarkets, and online platforms, to increase its customer base and revenue[86]. Challenges and Future Outlook - The financing leasing business continues to face significant challenges due to regulatory changes and credit policy adjustments, leading to a slowdown in its development and investment[87]. - Future outlook remains cautious, with a focus on cost management and potential market expansion strategies[116]. - The company remains optimistic about its business outlook following the easing of COVID-19 restrictions in China, aiming to seize suitable opportunities to enhance performance and returns[88].

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的內容概不 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依賴該等內容而引致的任何損失承擔任何責 任。 Baiying Holdings Group Limited 百 應 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8525） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 百應控股集團有限公司（「本公司」，及其附屬公司稱為「本集團」）董事（「董事」） 會（「董事會」）欣然公佈本集團截至2023年6月30日止六個月的未經審核中期業 績。本公告載有本公司2023年中期報告（「報告」）全文，符合香港聯合交易所有 限公司（「聯交所」）GEM證券上市規則（「GEM上市規則」）有關中期業績初步公告 隨附資料的相關規定。載有GEM上市規則所規定資料的報告印刷版將送達本 公司股東，並適時於聯交所網站www.hkexnews.hk 及本公司網站www.byleasing.com 可供查閱。 承董事會命 百應控股集團有限公司 主席 周士淵 中國福建省，2023年 ...

Revenue and Profitability - Revenue decreased from RMB 10.3 million for the three months ended March 31, 2022, to RMB 7.2 million for the three months ended March 31, 2023, representing a decline of approximately 30.1%[7] - The company recorded a loss of RMB 2.9 million for the three months ended March 31, 2023, compared to a profit of RMB 3.3 million for the same period in 2022[7] - For the three months ended March 31, 2023, total revenue was RMB 7,199,054, a decrease of 30.3% from RMB 10,342,573 in the same period of 2022[58] - The company reported a net loss of RMB 2,858,534 for the first quarter of 2023, compared to a profit of RMB 3,251,597 in the same quarter of 2022[59] - Basic and diluted loss per share was RMB (1.1), compared to earnings of RMB 1.2 per share in the prior year[58] - The company reported a net loss of RMB 2,857,993 for the three months ended March 31, 2023, compared to a profit of RMB 3,157,715 for the same period in 2022[79] - For the three months ended March 31, 2023, the company reported a net loss of RMB 2,857,993,000 compared to a profit of RMB 3,157,715,000 in the same period of 2022, representing a decline of approximately 190%[83] - Total comprehensive income for the same period was a loss of RMB 2,846,623,000, significantly down from a total comprehensive income of RMB 3,195,876,000 in Q1 2022[83] Revenue Breakdown - Revenue from financing services was RMB 2.0 million for the three months ended March 31, 2023, while revenue from sales of vinegar and other condiments was RMB 0.8 million[7] - Revenue from packaging and paper products trade amounted to RMB 4.4 million, accounting for 61.1% of total revenue for the three months ended March 31, 2023[16] - Revenue from vinegar and other condiments increased significantly to RMB 777,808, compared to RMB 61,765 in the same period last year[67] - Interest income for the financial services segment was RMB 2,024,929, while the packaging and paper products trading segment generated revenue of RMB 4,396,317[75] Expenses and Losses - Interest expenses decreased from RMB 0.8 million for the three months ended March 31, 2022, to RMB 0.5 million for the same period in 2023, primarily due to a reduction in average loan balances[21] - Operating expenses remained stable at RMB 2.3 million for both periods ended March 31, 2022, and March 31, 2023[22] - Sales expenses increased from RMB 0.2 million for the three months ended March 31, 2022, to RMB 1.8 million for the same period in 2023, mainly due to increased employee costs and promotional expenses[23] - The company incurred a total tax expense of RMB 270,214 for the three months ended March 31, 2023, down from RMB 1,988,049 in the same period of 2022[78] - Employee costs increased significantly to RMB 2,022,097 in Q1 2023 from RMB 985,165 in Q1 2022, marking an increase of approximately 105.3%[77] Impairment and Tax - Impairment losses decreased from RMB 4.7 million for the three months ended March 31, 2022, to RMB 0.8 million for the three months ended March 31, 2023, due to new factoring contracts and recovery of overdue receivables[24] - The company reported a significant impairment loss of RMB 783,987 for the three months ended March 31, 2023, compared to a reversal of impairment of RMB 4,685,975 in the same period of 2022[77] - Income tax expenses decreased from RMB 2.0 million for the three months ended March 31, 2022, to RMB 0.3 million for the three months ended March 31, 2023, primarily due to pre-tax losses incurred during the period[25] Business Expansion and Strategy - The company plans to expand its product sales in Fujian through various channels, including distributors and e-commerce platforms[6] - The company has launched several vinegar products under the "Qiaoxin 1950" brand and is actively developing new products[6] - The company has expanded its retail product offerings under the "Qiao Xin 1950" brand, starting from Fujian and gradually expanding to the national market[29] - The company aims to maximize production capacity and diversify its product offerings by collaborating with domestic retailers, large supermarkets, and online platforms[31] - The financing leasing business continues to face significant challenges due to regulatory tightening and credit policy adjustments, leading to a slowdown in its development[31] - The company has entered the paper products sales and supply chain industry, which has generated some revenue and created synergies with the financing leasing business[32] - The company continues to focus on expanding its financing solutions and value-added consulting services in the Chinese market[69] Shareholder and Corporate Governance - The board does not propose to declare any dividends for the three months ended March 31, 2023[45] - As of March 31, 2023, major shareholders include Mr. Zhou Yongwei with 124,143,908 shares (45.98%) and Septwolves Holdings Limited with 118,968,750 shares (44.06%)[54] - The company has confirmed compliance with non-competition commitments made by key individuals as of June 20, 2018[48] - The company has no knowledge of any circumstances requiring disclosure under GEM Listing Rules as of March 31, 2023[49] Share Option Plan - The company has adopted a share option plan effective from June 20, 2018, which will last for 10 years until June 20, 2028, to attract and retain talented participants[40] - The total number of shares that may be issued upon the exercise of all outstanding options under the share option plan is capped at 30% of the issued shares at any time[40] - As of March 31, 2023, the company has no unexercised options under the share option plan[44] - The share option plan allows for options to be granted without a minimum holding period prior to exercise, subject to board discretion[44] - The company has a total of 27,000,000 shares available for grant under the share option plan, representing 10% of the issued share capital[40] - The board has absolute discretion to determine the exercise price of the options, which cannot be lower than the closing price on the grant date[44] Equity and Financial Position - As of March 31, 2023, total equity attributable to equity shareholders was RMB 249,940,088,000, a decrease from RMB 282,592,966,000 at the end of Q1 2022, reflecting a decline of approximately 11.6%[83] - The company’s total equity as of March 31, 2023, was RMB 252,241,448,000, down from RMB 284,918,707,000 at the end of Q1 2022, marking a decrease of approximately 11.5%[83] - The company’s retained earnings as of March 31, 2023, stood at RMB 5,271,178,000, down from RMB 37,624,191,000 a year earlier, indicating a significant reduction in retained earnings[83] - The company’s foreign exchange reserve increased to RMB 1,598,966,000 as of March 31, 2023, from RMB 1,806,670,000 a year earlier, reflecting a decrease of approximately 11.5%[83] - The company’s premium on shares remained at RMB 238,097,760,000 as of March 31, 2023, indicating no change from the previous year[83]

Financial Performance - Total revenue for 2022 was RMB 28,172,000, a decrease of 27% compared to RMB 38,625,000 in 2021[8] - The company reported a net loss of RMB 26,321,000 for 2022, compared to a net loss of RMB 7,093,000 in 2021, indicating a significant decline in profitability[8] - The company's revenue decreased from RMB 386 million for the year ended December 31, 2021, to RMB 282 million for the year ended December 31, 2022, reflecting a decline of approximately 27%[17] - The net loss for the reporting period was approximately RMB 263 million, compared to a net loss of RMB 71 million for the year ended December 31, 2021[17] - The net profit margin decreased from -18.4% for the year ended December 31, 2021, to -93.4% for the year ended December 31, 2022, primarily due to difficulties in disposing of collateral from default agreements and increased impairment losses[90] Assets and Liabilities - Total assets decreased to RMB 318,957,000 in 2022 from RMB 357,396,000 in 2021, reflecting a downward trend in the company's financial position[8] - Total liabilities also decreased to RMB 63,868,000 in 2022 from RMB 75,767,000 in 2021, showing a reduction in financial obligations[8] - Total current assets decreased from RMB 2,190 million as of December 31, 2021, to RMB 2,030 million as of December 31, 2022, primarily due to a decrease in loans and receivables by RMB 361 million and a decrease in receivables from finance leases by RMB 327 million, offset by an increase in cash and cash equivalents by RMB 510 million[77] - Total current liabilities increased from RMB 504 million as of December 31, 2021, to RMB 581 million as of December 31, 2022, mainly due to an increase in borrowings by RMB 122 million, offset by a decrease in deferred income by RMB 21 million[77] Revenue Sources - The financing leasing services generated revenue of RMB 87 million, accounting for 30.9% of total revenue for the year ended December 31, 2022[19] - Revenue from the sale of packaging and paper products was RMB 13.2 million, making up 46.9% of total revenue for the year ended December 31, 2022[37] - Revenue from factoring services for the year ended December 31, 2022, was RMB 5,700,000, accounting for 20.1% of total revenue[25] - Revenue from the sale of vinegar and other condiments was RMB 0.5 million, accounting for 1.6% of total revenue for the year ended December 31, 2022[33] Operational Challenges - The company faced challenges due to rising raw material and labor costs, as well as regulatory restrictions impacting small and medium enterprises (SMEs) in 2022[10] - The demand for financing solutions from SMEs continued to decline, leading to a decrease in business volume and revenue for the company[10] - The external environment in 2022 was characterized by geopolitical tensions and economic challenges, impacting overall market conditions[10] - The financing leasing business continues to face significant restrictions and challenges due to regulatory changes and monetary credit policy adjustments, leading to a slowdown in business development and investment[101] Cash Flow and Investments - The net cash flow from operating activities for the year ended December 31, 2022, was RMB 71.3 million, an increase from RMB 51.0 million for the previous year[72] - The net cash used in investing activities for the year ended December 31, 2022, was RMB 21.2 million, mainly due to payments for the purchase of property, plant, and equipment amounting to RMB 29.5 million[73] - The net cash flow from financing activities for the year ended December 31, 2022, was RMB 1.0 million, which included borrowings of RMB 63.4 million offset by repayments of RMB 60.6 million[74] Compliance and Governance - The company has maintained compliance with regulations regarding foreign investment leasing companies throughout the fiscal year[43][45] - The company has a strong focus on compliance and corporate governance, with independent directors overseeing these areas[115] - The company has confirmed compliance with GEM Listing Rules regarding related party transactions during the reporting period[184] - The company has implemented strict compliance with relevant laws and regulations, including the GEM Listing Rules and the Securities and Futures Ordinance[129] Future Outlook - The company anticipates a gradual recovery in the consumption market as pandemic control measures are optimized and fiscal policies continue to support economic activity[10] - The company anticipates a recovery in supply and demand dynamics in 2023 as COVID-19 restrictions ease and the Chinese economy accelerates[12] - The outlook for all businesses in 2023 is optimistic, with a commitment to seize suitable opportunities to enhance performance and returns[102] Shareholder Information - As of December 31, 2022, the company’s major shareholders include Zhou Yongwei with 124,143,908 shares (45.98%) and Septwolves Holdings with 118,968,750 shares (44.06%) [200] - The company’s independent auditor confirmed that all related party transactions were approved by the board and complied with GEM listing rules[190] Legal and Risk Management - As of December 31, 2022, the company had 30 pending legal cases, with 4 new cases filed during the reporting period to recover overdue payments[175] - Credit risk is identified as the most significant inherent risk, stemming from customers' inability or unwillingness to repay financial obligations[134] - The company has implemented a comprehensive risk management system, including multi-layer assessments and approvals based on clients' credit status and transaction history[63]

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的內容概不 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依賴該等內容而引致的任何損失承擔任何責 任。 Baiying Holdings Group Limited 百 應 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8525） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 百應控股集團有限公司（「本公司」，及其附屬公司稱為「本集團」）董事（「董事」） 會（「董事會」）欣然公佈本集團截至2022年12月31日止年度的經審核年度業績。 本公告載有本公司2022年年度報告（「報告」）全文，符合香港聯合交易所有限公 司（「聯交所」）GEM證券上市規則（「GEM上市規則」）有關年度業績初步公告隨附 資料的相關規定。載有GEM上市規則所規定資料的報告印刷版將送達本公司 股東，並適時於聯交所網站www.hkexnews.hk及本公司網站www.byleasing.com可供 查閱。 承董事會命 百應控股集團有限公司 主席 周士淵 中國福建省，2023年3月2 ...

Revenue Performance - Total revenue for the nine months ended September 30, 2022, was RMB 22.8 million, a decrease from RMB 24.9 million for the same period in 2021, primarily due to a reduction in financial services revenue by RMB 5.4 million [9]. - Revenue from financing leasing services was RMB 7.3 million, accounting for 31.8% of total revenue for the nine months ended September 30, 2022 [11]. - Revenue from factoring services was RMB 3.7 million, representing 16.4% of total revenue for the same period [12]. - Revenue from the sale of vinegar and other condiments was RMB 0.2 million, contributing 0.8% to total revenue [13]. - Revenue from packaging and paper products trade was RMB 11.6 million, accounting for 51.0% of total revenue for the nine months ended September 30, 2022 [17]. - The company reported a total of RMB 362,711 in impairment losses for receivables, indicating challenges in asset recovery [97]. - The revenue from the financial services segment accounted for the majority of the group's income, with finance lease services being the primary contributor [87]. - Total revenue for the reporting period was RMB 24,874,110, with a breakdown of RMB 16,615,474 from interest income and RMB 8,258,636 from sales of packaging and paper products [95]. Financial Performance - The group recorded a loss of RMB 17 million for the nine months ended September 30, 2021, and a loss of RMB 152 million for the nine months ended September 30, 2022, attributed to reduced interest income and increased tax expenses [29]. - The net loss for the nine months ended September 30, 2022, was RMB 15,231,325, compared to a net loss of RMB 1,730,842 for the same period in 2021 [70]. - The basic and diluted loss per share for the nine months ended September 30, 2022, was RMB 5.7, compared to RMB 0.7 for the same period in 2021 [70]. - The comprehensive income for the period was a loss of 15,467,922 RMB, compared to a loss of 1,768,415 RMB in the previous year [108]. - The company reported a net loss of 15,231,325 RMB for the nine months ended September 30, 2022, compared to a net loss of 1,730,842 RMB for the same period in 2021 [108]. Operating Expenses - Operating expenses decreased from RMB 89 million for the nine months ended September 30, 2021, to RMB 83 million for the nine months ended September 30, 2022 [23]. - Sales expenses increased from zero to RMB 15 million for the nine months ended September 30, 2022, mainly due to the launch of packaging and paper products trading and the manufacturing and sale of vinegar and other condiments [25]. - The company’s operating expenses for the nine months ended September 30, 2022, were RMB 8,265,572, slightly down from RMB 8,949,330 for the same period in 2021 [68]. - Operating expenses totaled RMB 8,949,330, reflecting a significant cost structure that impacted overall profitability [95]. Business Diversification - The company is actively seeking opportunities to expand into other business areas while continuing to focus on financing leasing and factoring services [8]. - The company established Fujian Yongchun Qiaoxin Brewing Co., Ltd. in April 2020 to diversify its business into vinegar production [8]. - The company is diversifying its business by investing in the vinegar production and sales industry, leveraging the unique brewing process and regional brand advantages of Yongchun vinegar [36]. - The group has diversified its business by establishing Fujian Baiying Paper Industry Co., Ltd. and Fujian Yongchun Qiaoxin Brewing Co., Ltd. to enhance its market presence in packaging and condiment products [87]. Shareholder Information - As of September 30, 2022, the company has granted options involving a total of 27,000,000 shares, accounting for 10% of all issued shares [45]. - The company’s share options plan was adopted on June 20, 2018, and is valid for a period of 10 years, expiring on June 20, 2028 [43]. - The maximum number of shares that may be issued upon the exercise of options granted under the share option plan is limited to 10% of the issued share capital as of the date of GEM listing [45]. - The board has absolute discretion to determine the exercise price of the options, which cannot be lower than the closing price on the date of the option offer [50]. - There are no unexercised options granted under the share option plan as of September 30, 2022 [50]. - The board does not recommend the payment of any dividends for the nine months ending September 30, 2022 [51]. - The company did not declare any dividends for the nine months ended September 30, 2022, compared to RMB 4,476,222 in dividends paid in the same period last year [105]. - As of September 30, 2022, the company’s major shareholders include Zijiang Capital Limited with a direct interest of approximately 14.06% and HDK Capital Limited with a direct interest of approximately 4.60% [57]. Tax and Interest Income - Interest expenses decreased from RMB 3.5 million for the nine months ended September 30, 2021, to RMB 2.7 million for the same period in 2022 [20]. - The total interest income for the nine months ended September 30, 2022, was RMB 11,014,401, compared to RMB 16,379,625 for the same period in 2021, showing a decrease of approximately 32.5% [91]. - The company recorded interest income of RMB 11,014,401 for the nine months ended September 30, 2022, down 32.5% from RMB 16,379,625 in the same period of 2021 [68]. - Tax expenses for the period included a current tax provision of RMB 902,088, with deferred tax adjustments resulting in a net tax expense of RMB 8,120,631 [99].

Financial Performance - Baiying Holdings Group Limited reported a significant increase in revenue, achieving a total of HKD 150 million for the first half of 2022, representing a 25% growth compared to the same period last year[22]. - The company recorded a loss of RMB 13.4 million for the six months ended June 30, 2022, compared to a profit of RMB 1.2 million for the same period in 2021[24]. - Revenue for the six months ended June 30, 2022, was RMB 17,938,475, an increase of 18.2% compared to RMB 15,190,842 for the same period in 2021[130]. - The company reported a total comprehensive loss of RMB (13,531,194) for the period, compared to a total comprehensive income of RMB 1,180,043 in the same period last year[133]. - The company reported a loss of RMB 13,474,976 for the six months ended June 30, 2022, compared to a profit of RMB 1,137,050 for the same period in 2021, indicating a significant decline[176]. Revenue Growth - The company’s user base expanded to 500,000 active users, marking a 40% increase year-over-year, indicating strong market demand for its services[22]. - Baiying Holdings provided an optimistic outlook for the second half of 2022, projecting a revenue growth of 30% driven by new product launches and market expansion strategies[22]. - Total revenue increased from RMB 151.9 million for the six months ended June 30, 2021, to RMB 179.4 million for the six months ended June 30, 2022, primarily due to an increase in packaging and paper product trading revenue by RMB 71 million, partially offset by a decrease in financing lease services by RMB 46 million[55]. - Revenue from the sale of packaging and paper products was RMB 10,585,927 for the six months ended June 30, 2022, significantly up from RMB 3,442,619 in the previous year[130]. Cost Management - Gross profit margin improved to 45%, up from 40% in the previous year, reflecting better cost management and pricing strategies[22]. - Operating expenses were reduced by 10% due to streamlined operations and cost-cutting measures implemented during the reporting period[22]. - Interest expenses decreased from RMB 2.3 million to RMB 1.9 million, mainly due to a reduction in average loan balances[58]. - Operating expenses increased from RMB 54.88 million to RMB 58.57 million, with employee costs decreasing from RMB 26.97 million to RMB 16.86 million[59]. Market Expansion - Baiying Holdings plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[22]. - The company has established strategic partnerships with local firms to facilitate its expansion efforts in new markets[22]. - The company plans to enhance its sales and marketing capabilities in major cities of the Yangtze River Delta and Pearl River Delta regions[24]. Investment and Development - The company is investing in research and development, allocating HKD 10 million towards the development of new technologies aimed at enhancing operational efficiency[22]. - The company aims to launch two new products by the end of 2022, which are expected to contribute an additional HKD 20 million in revenue[22]. - The company established Qiaoxin in April 2020, a vinegar production factory with a registered capital of RMB 50 million, to diversify its business[24]. - The company also established Baiying Paper Industry in January 2021 to expand its business into packaging and paper products trading[24]. Financial Position - Total current assets increased from RMB 2,190 million as of December 31, 2021, to RMB 2,332 million as of June 30, 2022, primarily due to an increase in loans and receivables from factoring services by RMB 694 million[78]. - Total current liabilities rose from RMB 504 million as of December 31, 2021, to RMB 838 million as of June 30, 2022, mainly due to an increase in bank borrowings by RMB 371 million[78]. - The asset-liability ratio increased from 0.1 times to 0.2 times as of June 30, 2022, indicating a rise in financial leverage[58]. - The company reported a total equity of RMB 268,097,755 as of June 30, 2022, down from RMB 281,628,949 as of December 31, 2021[146]. Shareholder Information - The company’s stock option plan, effective from June 20, 2018, allows for the issuance of options up to 30% of the total issued shares, with a maximum of 10% of the issued shares available for grant within any 12-month period[107]. - As of June 30, 2022, no stock options have been granted, exercised, canceled, or lapsed under the stock option plan[107]. - Major shareholders include Septwolves Holdings with 118,968,750 shares, representing 44.06% of the issued share capital[114]. Compliance and Governance - The company confirms compliance with corporate governance codes during the reporting period[122]. - The independent review report confirms that the interim financial report complies with Hong Kong Accounting Standards[128]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[124].

Revenue and Profitability - Revenue increased from RMB 6.7 million for the three months ended March 31, 2021, to RMB 10.3 million for the three months ended March 31, 2022, representing a growth of approximately 53.7%[7] - The company recorded a net profit of RMB 3.3 million for the three months ended March 31, 2022, compared to a net loss of RMB 0.5 million for the same period in 2021[7] - The net loss for the three months ended March 31, 2021, was RMB 0.5 million, while the net profit for the three months ended March 31, 2022, was RMB 3.3 million, primarily due to the reversal of impairment losses[26] - The company reported a revenue of RMB 10,342,573 for the three months ended March 31, 2022, representing an increase from RMB 6,675,134 in the same period of 2021, which is a growth of approximately 55.5%[61] - The net profit for the period was RMB 3,251,597, a significant recovery from a net loss of RMB 501,302 in the previous year[63] - The total comprehensive income for the period was RMB 3,289,758, compared to a total comprehensive loss of RMB 538,671 in the same period last year[63] Revenue Breakdown - Financing services generated revenue of RMB 4.2 million, accounting for 34.8% of total revenue for the three months ended March 31, 2022[9] - Revenue from packaging and paper products trade was RMB 6.1 million, making up 58.6% of total revenue for the same period[16] - The company generated sales from products amounting to RMB 6,127,054, with packaging and paper products contributing RMB 6,065,289 and vinegar and alcoholic products contributing RMB 61,765[72] - For the three months ended March 31, 2022, the reported segment revenue totaled RMB 10,342,573, with financial services contributing RMB 4,215,519, packaging and paper products trading RMB 6,065,289, and manufacturing and sales of vinegar and alcoholic products RMB 61,765[81] Operating Expenses and Cost Management - Operating expenses slightly decreased from RMB 2.6 million to RMB 2.3 million, primarily due to a reduction in employee costs[22] - Interest expenses decreased from RMB 1.5 million for the three months ended March 31, 2021, to RMB 0.8 million for the same period in 2022[20] - Operating expenses, including selling expenses, were RMB 2,273,385, a decrease from RMB 2,631,419 in the previous year, indicating improved cost management[61] - Employee costs for the three months ended March 31, 2022, were RMB 985,165, a decrease from RMB 1,434,772 in the same period of 2021, indicating cost management efforts[85] New Ventures and Product Development - The company began trial production of vinegar and wine products in January 2022, generating revenue of RMB 0.06 million for the three months ended March 31, 2022[14] - The company plans to commence full production and launch its vinegar and wine products in the second half of 2022, aiming for greater investment returns[30] - The company has identified the vinegar production and sales as a significant diversification project, leveraging the unique brewing process and regional brand advantages of Yongchun vinegar, which is one of China's four famous vinegars[32] - The company is diversifying its business through the establishment of Fujian Baiying Paper Industry Co., Ltd. and Fujian Yongchun Qiaoxin Brewing Co., Ltd. to enhance its packaging and vinegar product lines[75] Shareholder Information and Governance - Major shareholder Septwolves Holdings Limited holds 118,968,750 shares, representing 44.06% of the total issued share capital[56] - Zijiang Capital holds 37,968,750 shares, accounting for 14.06% of the total issued share capital[56] - HDK Capital has a direct interest in 22,781,250 shares, which is 8.44% of the total issued share capital[56] - The company has adopted good corporate governance elements to ensure high levels of governance crucial for development and shareholder protection[34] - The audit committee consists of experienced independent non-executive directors who have reviewed the financial statements for the three months ended March 31, 2022, with no disagreements on accounting treatments[35] Share Options and Dividends - The company has a stock option plan effective for 10 years, allowing for the issuance of options up to 30% of the issued shares, with 27,000,000 options currently available, representing 10% of the total issued shares[40] - No dividends were proposed or recommended for the three months ending March 31, 2022[45] - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year's performance[95] Financial Performance Metrics - The company reported a gross profit margin improvement, with gross profit of RMB 4,419,283 compared to a gross loss in the previous year[61] - The reported segment profit before tax for the same period was RMB 5,239,646, with financial services generating RMB 5,963,426, while the manufacturing and sales of vinegar and alcoholic products reported a loss of RMB 1,007,435[81] - The company reported a significant impairment loss of RMB 4,685,975, primarily related to loans and receivables, which impacted overall profitability[88] - The income tax expense for the period was RMB 1,988,049, compared to an income tax credit of RMB 119,324 in the previous year, reflecting changes in tax obligations[90] - Basic earnings per share for the three months ended March 31, 2022, were RMB 3,157,715, compared to a loss per share of RMB 501,297 in the same period of 2021[93] Assets and Financial Position - The company’s total assets as of March 31, 2022, were 284,918,707, reflecting a significant increase from previous periods[103] - The total depreciation and amortization expenses for the period were RMB 455,687, compared to RMB 260,095 in the same period of 2021, indicating increased investment in fixed assets[88]

Impairment and Receivables Management - The company recognized impairment losses on receivables from finance leases amounting to RMB 14 million due to increased recovery risk from three default agreements[3]. - As of December 31, 2021, the total outstanding amount related to the impairment agreements was RMB 61.1 million, with an impairment loss provision of RMB 23.2 million[4]. - The company initiated legal or arbitration proceedings for all impairment agreements that have been overdue for more than 90 days[3]. - The company has written off a total of RMB 12.2 million in receivables due to six default agreements, with full impairment provisions made[25][27]. - The total amount of receivables written off is RMB 12.2 million, which has been fully provisioned for impairment and will not impact the company's current profit and loss[37]. - The board believes there is no reasonable expectation of recovering debts that have been overdue for more than 5 years, considering multiple claims against the counterparty[1]. - The board has assessed that there is no reasonable expectation of recovering debts that have been overdue for more than 6 years[32]. - The company has engaged in lengthy legal and arbitration procedures without recovering debts from counterparties due to a lack of enforceable assets[2]. - The board has determined that the costs of further litigation may exceed the remaining receivables, leading to the decision not to pursue these debts[1]. Credit Risk Assessment - The company assessed expected credit losses based on the expected credit loss model as of the reporting date, in accordance with Hong Kong Financial Reporting Standard 9[12]. - The financial instruments are categorized into three stages based on credit risk, with the first stage representing 12-month expected credit losses[14]. - The second stage includes financial instruments with significant increases in credit risk but not yet recognized as impaired, typically involving assets overdue by 30 to 90 days[14]. - The third stage involves financial instruments recognized as impaired, typically those overdue by more than 90 days[14]. - The estimated expected credit loss for impaired receivables is based on the estimated recoverable value of collateral, adjusted by a discount rate ranging from approximately 19% to 37%[15]. Collateral and Recovery Efforts - The total value of collateral for 38 parking lots is estimated at RMB 7.1 million, with each parking lot starting at a price of RMB 188,000 in public auction[16]. - The collateral valuation considers factors such as geographical location, disposal difficulty, estimated disposal time and costs, and the present value of cash flows generated by the collateral[18][19]. - The company has recovered part of the receivables in previous cases but has faced challenges in enforcing collection due to a lack of assets[3]. - The company has initiated legal proceedings to recover debts when other recovery methods have failed, including applying for enforcement procedures in court[46]. Risk Management and Due Diligence - The company has implemented a comprehensive and effective risk management system, including multi-layered assessment and approval procedures based on the credit status of customers[38]. - The company has conducted due diligence and risk assessments before signing any financing lease agreements, ensuring compliance with business process management regulations[38]. - The company has implemented a comprehensive due diligence and risk assessment process for potential projects, including background checks on counterparties and financial data analysis[39]. - Background checks on the ultimate beneficial owners of counterparties include their education, employment, and entrepreneurial experience[41]. - The company has conducted SWOT analysis on counterparties to assess their business environment[41]. - The company has maintained strict post-authorization management and regular reviews of write-off agreements[46]. Financial Performance and Reporting - The company expects to receive a total of RMB 15 million from a settlement agreement with a related party, with the first payment due on January 10, 2022[11]. - The company has established a payment schedule under a settlement agreement, totaling RMB 15 million, to be paid in six installments[20]. - The company has ensured that all information in the performance announcement is accurate and complete, with no misleading or fraudulent elements[47]. - The financial data analysis includes monthly revenue, sales inventory, and profit margins over the last two years[41]. - The company has analyzed the profitability and operational costs of sale and leaseback assets, including projected profitability[41].

Financial Performance - Total revenue for 2021 was RMB 38,625,000, a decrease of 19.5% compared to RMB 32,078,000 in 2020[12] - The company reported a loss of RMB 7,093,000 for 2021, compared to a profit of RMB 6,328,000 in 2020[12] - The company's revenue increased from RMB 321 million for the year ended December 31, 2020, to RMB 386 million for the year ended December 31, 2021, representing a growth of approximately 20.3%[22] - The company recorded a net loss of approximately RMB 71 million for the year ended December 31, 2021, compared to a net profit of RMB 63 million for the year ended December 31, 2020[22] - The company's net profit margin dropped significantly to -18.4% in 2021 from 19.7% in 2020, primarily due to increased impairment provisions and a decline in the fair value of financial assets[101] Assets and Liabilities - Total assets decreased to RMB 357,396,000 in 2021 from RMB 396,229,000 in 2020, representing a decline of 9.8%[12] - Total liabilities decreased significantly to RMB 75,767,000 in 2021 from RMB 105,319,000 in 2020, a reduction of 28.0%[12] - The net asset value for 2021 was RMB 281,629,000, down from RMB 290,910,000 in 2020, indicating a decrease of 3.9%[12] - The company's debt-to-equity ratio improved from 0.15 times as of December 31, 2020, to 0.10 times as of December 31, 2021, indicating a reduction in financial leverage[59] - The debt ratio also decreased to 0.10 times in 2021 from 0.15 times in 2020, mainly due to a reduction in bank borrowings by RMB 17.7 million[101] Operational Challenges - The company faced challenges due to rising raw material costs and regulatory pressures across various sectors, impacting business volume and revenue[16] - The implementation of new regulations under the "Interim Measures for the Supervision and Administration of Financing Leasing Companies" contributed to a decline in business volume and revenue in 2021[16] - The overall business volume and capital demand from potential clients have been shrinking due to the increasingly stringent operating conditions[16] - The company has experienced significant challenges due to the ongoing impact of the COVID-19 pandemic on the economy[148] Business Development and Strategy - The company continues to provide financing solutions and support for the rapid development of small and medium-sized enterprises despite the challenging environment[16] - The company aims to leverage its strengths to conduct leasing business steadily while promoting the development of Qiaoxin and launching quality products in the vinegar industry[18] - The company plans to enhance its sales and marketing capabilities in major cities within the Yangtze River Delta and Pearl River Delta regions[22] - The company plans to optimize its business structure and enhance management levels in response to industry policies and regulatory trends[114] - The company is committed to sustainable development and integrating ESG principles into its business strategy[139] Revenue Sources - The financing leasing services generated revenue of RMB 185 million, accounting for 47.8% of total revenue for the year ended December 31, 2021[23] - The annual revenue from factoring services for the year ended December 31, 2021, was RMB 2.3 million, accounting for 6.0% of total revenue[34] - The company provided consulting services that generated revenue of RMB 0.2 million for the year ended December 31, 2021, accounting for 0.6% of total revenue[38] - The packaging and paper products trade generated sales revenue of RMB 17.6 million, accounting for 45.6% of total revenue for the year ended December 31, 2021[46] Cash Flow and Investments - Cash and cash equivalents decreased from RMB 262.45 million at the beginning of the year to RMB 191.46 million at the end of the year, with a net cash outflow of RMB 71.38 million[69] - Cash used in investing activities amounted to RMB 350.99 million for the year ended December 31, 2021, primarily due to acquisition payments[71] - The net cash flow used in financing activities for the year ended December 31, 2021, was RMB 23.1 million, which included dividends paid to equity shareholders of RMB 4.5 million and bank loan repayments of RMB 59.8 million, partially offset by loan proceeds of RMB 42.1 million[72] Market and Industry Trends - The economic environment in China showed signs of recovery in the first half of 2021 but faced a slowdown towards the end of the year[16] - The demand for paper packaging materials continues to rise due to the growth of online consumption and government initiatives such as the "ban on waste" and "ban on plastics"[21] - The Chinese financing leasing industry has seen rapid development since 2012, supported by favorable government policies in Fujian Province[21] Corporate Governance and Compliance - The company has fully complied with the corporate governance code during the reporting period[187] - The company has a dedicated legal and risk management team to oversee compliance and contract reviews[131] - The board has confirmed compliance with non-competition commitments by key individuals[185] Future Outlook - The company plans to expand into the seasoning market and will begin full production and product launches in 2022[112] - The company aims to enhance the Qiaoxin brand through R&D, channel development, operations, and marketing, anticipating increased revenue from this new business[114] - The company will actively pursue business development opportunities while ensuring the safety of its interests and capital[114]