[Financial Summary](index=1&type=section&id=一、%20主要财务数据) The company experienced significant declines in Q3 and YTD 2021 operating revenue and net profit, with total assets decreasing and shareholder equity increasing [Key Financial Indicators](index=1&type=section&id=%28一%29主要会计数据和财务指标) The company reported significant declines in Q3 and YTD 2021 operating revenue and net profit, with net profit attributable to shareholders falling 63.78% in Q3 and 69.51% YTD, alongside a decrease in total assets and an increase in shareholder equity Key Financial Data and Indicators | Item | Current Reporting Period (Q3 2021) (Million Yuan) | Year-to-Date (YTD 2021) (Million Yuan) | Year-over-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 92.78 | 304.94 | -14.34% | | Net Profit Attributable to Listed Company Shareholders | 7.86 | 8.88 | -69.51% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-Recurring Items) | 4.81 | 6.98 | -76.33% | | Net Cash Flow from Operating Activities | Not Applicable | 149.76 | -56.71% | | Basic Earnings Per Share (Yuan/Share) | 0.0153 | 0.0173 | -69.54% | Key Financial Position Indicators | Item | As of Report End (Sep 30, 2021) (Million Yuan) | As of Prior Year End (Dec 31, 2020) (Million Yuan) | Change from Prior Year End (%) | | :--- | :--- | :--- | :--- | | Total Assets | 4,958.61 | 5,402.67 | -8.22% | | Total Equity Attributable to Listed Company Shareholders | 1,437.40 | 1,248.63 | 15.12% | [Non-Recurring Gains and Losses](index=2&type=section&id=%28二%29非经常性损益项目和金额) In YTD 2021, the company's non-recurring gains and losses totaled 1.91 million yuan, primarily from government grants and other non-operating income, partially offset by fair value changes in trading financial assets and liabilities Non-Recurring Gains and Losses Items and Amounts | Item | Year-to-Date Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-Current Assets | 311,428.72 | | Government Grants Recognized in Current Profit/Loss | 3,363,667.79 | | Gains/Losses from Fair Value Changes of Trading Financial Assets/Liabilities | -3,934,158.30 | | Other Non-Operating Income and Expenses | 2,325,500.75 | | **Total** | **1,906,126.78** | [Analysis of Major Financial Indicator Changes](index=3&type=section&id=%28三%29主要会计数据%E3%80%81财务指标发生变动的情况%E3%80%81原因) The company's core profitability metrics, including net profit and EPS, significantly declined due to employee stock plan amortization, business restructuring, and market interest rate decreases, with operating cash flow also decreasing due to a high prior period base - During the reporting period, profitability indicators such as net profit attributable to listed company shareholders, net profit excluding non-recurring items, and earnings per share significantly decreased year-over-year (from **-63% to -78%**), primarily due to the amortization of employee stock ownership plan expenses, business structure optimization, and overall market interest rate declines[9](index=9&type=chunk) - Year-to-date, net cash flow from operating activities decreased by **56.71%** year-over-year, mainly due to a larger base of operating borrowings in the prior period[10](index=10&type=chunk) [Shareholder Information](index=4&type=section&id=二、%20股东信息) The company's shareholder structure includes 45,175 common shareholders, with the largest shareholder having a portion of its shares pledged, and an associated relationship noted among the top ten shareholders [Major Shareholder Holdings](index=4&type=section&id=%28一%29普通股股东总数和表决权恢复的优先股股东数量及前十名股东持股情况表) As of the report end, the company had 45,175 common shareholders, with Anhui Xinli Kechuang Group Co., Ltd. as the largest shareholder at 23.60%, having a portion of its shares pledged, and an associated relationship noted among the top ten shareholders - As of the report end, the company had **45,175** common shareholders[11](index=11&type=chunk) Top Ten Shareholder Holdings | Shareholder Name | Holding Percentage (%) | Number of Shares Held | Pledge Status | | :--- | :--- | :--- | :--- | | Anhui Xinli Kechuang Group Co., Ltd. | 23.60 | 120,999,907 | Pledged 84,699,937 shares | | Anhui Conch Cement Company Limited | 6.08 | 31,197,800 | None | | Zhang Jinghong | 4.73 | 24,226,400 | None | | Anhui Xinli Financial Co., Ltd. Employee Stock Ownership Plan | 4.06 | 20,800,000 | None | | Huatai Securities Asset Management - China Merchants Bank - Huatai Jiayuan No. 3 | 3.54 | 18,139,237 | None | - Among the top ten shareholders, Wang Jian is the actual controller of Shenzhen Ruanyin Aojin Technology Co., Ltd., indicating an associated relationship between them[12](index=12&type=chunk) [Financial Statements](index=5&type=section&id=四、%20季度财务报表) The company's financial statements reflect a decrease in total assets and liabilities, an increase in shareholder equity, and significant declines in operating revenue and net profit, alongside reduced cash flows from operating activities [Consolidated Balance Sheet](index=5&type=section&id=合并资产负债表) As of September 30, 2021, total assets were 4.96 billion yuan, an 8.22% decrease from year-end, total liabilities were 2.43 billion yuan, a 14.69% decrease, and equity attributable to shareholders was 1.44 billion yuan, a 15.12% increase, primarily due to reduced liabilities Consolidated Balance Sheet Data | Item | Sep 30, 2021 (Yuan) | Dec 31, 2020 (Yuan) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,958,607,341.46 | 5,402,673,719.66 | -8.22% | | Total Liabilities | 2,425,713,897.03 | 2,843,780,563.17 | -14.69% | | Total Equity Attributable to Parent Company Shareholders | 1,437,399,549.26 | 1,248,631,639.98 | +15.12% | | Total Shareholders' Equity | 2,532,893,444.43 | 2,558,893,156.49 | -1.02% | [Consolidated Income Statement](index=8&type=section&id=合并利润表) In YTD 2021, the company's total operating revenue was 305 million yuan, a 14.34% decrease year-over-year, and net profit attributable to parent company shareholders was 8.88 million yuan, a 69.51% decrease, primarily due to reduced investment income and increased fair value losses Consolidated Income Statement Data | Item | YTD 2021 (Yuan) | YTD 2020 (Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | I. Total Operating Revenue | 304,942,428.28 | 356,003,952.43 | -14.34% | | II. Total Operating Costs | 203,195,166.74 | 206,244,806.05 | -1.48% | | III. Operating Profit | 110,952,209.64 | 153,255,204.74 | -27.60% | | IV. Total Profit | 113,220,645.43 | 152,723,214.29 | -25.86% | | Net Profit Attributable to Parent Company Shareholders | 8,884,641.26 | 29,140,055.36 | -69.51% | [Consolidated Cash Flow Statement](index=10&type=section&id=合并现金流量表) In YTD 2021, net cash flow from operating activities was 150 million yuan, a 56.71% decrease year-over-year due to prior period operating borrowings, while investing and financing activities resulted in net outflows, leading to a decrease in cash and cash equivalents Consolidated Cash Flow Statement Data | Item | YTD 2021 (Yuan) | YTD 2020 (Yuan) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 149,764,706.85 | 345,934,790.33 | -56.71% | | Net Cash Flow from Investing Activities | -35,976,583.84 | -27,297,868.20 | -31.79% | | Net Cash Flow from Financing Activities | -271,802,166.60 | -315,378,732.07 | +13.82% | | Net Increase in Cash and Cash Equivalents | -158,014,043.59 | 3,258,190.06 | -4949.77% | [Changes in Accounting Policies](index=12&type=section&id=%28三%292021%20年起首次执行新租赁准则调整首次执行当年年初财务报表相关情况) Effective January 1, 2021, the company adopted new lease standards, adjusting the opening financial statements by recognizing 1.88 million yuan in right-of-use assets and reducing other non-current assets by an equal amount, without impacting comparable period information - The company adopted new lease standards effective January 1, 2021, adjusting opening financial statement items based on the cumulative impact of initial application, without restating comparable period information[31](index=31&type=chunk) - The change in accounting policy led to the recognition of **1,879,200.00 yuan** in right-of-use assets and a simultaneous reduction of **1,879,200.00 yuan** in other non-current assets as of January 1, 2021[32](index=32&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2021 was ¥212,159,605.70, a decrease of 8.97% compared to ¥233,058,218.48 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥1,025,512.29, down 86.22% from ¥7,439,357.62 in the previous year[21]. - The net cash flow from operating activities was ¥10,557,698.42, a significant decline of 95.20% from ¥219,918,377.03 in the same period last year[21]. - The total assets at the end of the reporting period were ¥5,240,533,195.55, a decrease of 3.00% from ¥5,402,673,719.66 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company increased by 13.70% to ¥1,419,677,130.06 from ¥1,248,631,639.98 at the end of the previous year[21]. - Basic earnings per share for the first half of 2021 were ¥0.0020, down 86.21% from ¥0.0145 in the same period last year[22]. - The weighted average return on net assets was 0.08%, a decrease of 0.51 percentage points from 0.59% in the previous year[22]. - Total revenue for the reporting period was CNY 212.16 million, a decrease of 8.97% year-on-year, while net profit fell by 30.43% to CNY 37.65 million[43]. - The company reported a significant decrease in other receivables from ¥57,283,591.13 in December 2020 to ¥10,133,433.59 in June 2021, a decline of approximately 82.3%[117]. - The company reported a net loss of CNY 59,332,999.99 for the first half of 2021, highlighting challenges in profitability[140]. Investment and Subsidiaries - The company’s subsidiary, Dexin Guarantee, has a registered capital of CNY 270 million and is a key player in the financing guarantee industry in Anhui Province[28]. - Dexin Small Loan, a subsidiary, was established with a registered capital of CNY 330 million and focuses on small loans, contributing significantly to local economic development[29]. - Investment income from subsidiaries decreased by ¥4.36 million compared to the previous year[23]. - The company’s financing guarantee services cover various sectors, including agriculture, transportation, and retail, addressing the financing difficulties of SMEs[28]. - The company has received multiple awards for its performance in the small loan sector, including recognition as an outstanding small loan company in Anhui Province[30]. - The company’s subsidiary, Derun Leasing, has a registered capital of 817 million RMB and aims to optimize asset structure and improve asset quality[36]. Cash Flow and Liquidity - The net cash flow from operating activities for the first half of 2021 was ¥10,557,698.42, a significant decrease of 95.2% compared to ¥219,918,377.03 in the first half of 2020[130]. - Cash inflow from financing activities was ¥519,868,929.14, down 28.9% from ¥731,033,169.83 in the first half of 2020[130]. - The ending balance of cash and cash equivalents was ¥206,947,148.54, slightly up from ¥204,617,675.98 at the end of the first half of 2020[131]. - The cash flow from operating activities showed a significant decline, indicating potential challenges in revenue generation and operational efficiency[130]. Regulatory and Market Environment - The financing guarantee industry has seen regulatory improvements, enhancing the legal status and operational standards of guarantee institutions[29]. - The regulatory environment for small loan companies has become more stringent, promoting a shift towards standardized operations in the industry[32]. - The company faces market, credit, and liquidity risks, with strategies in place to manage these risks effectively[54][55]. Research and Development - Research and development expenses increased by 40.01% to CNY 2.58 million, reflecting the company's commitment to innovation[47]. - The company reported a significant increase in research and development expenses, which rose to ¥2,578,299.68, up 40.0% from ¥1,841,483.33 in the previous year[121]. Shareholder and Capital Structure - The employee stock ownership plan holds 20,800,000 shares, accounting for 4.05% of the total share capital[66]. - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., holds 120,999,907 shares, representing 23.57% of the total shares[105]. - The company has a total of 84,699,937 shares pledged by its largest shareholder[105]. - The company has not reported any changes in its share capital structure during the reporting period[101]. Legal and Compliance Matters - The company has ongoing litigation with Hefei Huhai Material Co., with a lawsuit amount of 718.17 CNY and a balance of 720.01 CNY[81]. - The company has reported no significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[79]. - The company has a commitment to compensate for any losses caused by violations of shareholding commitments[76]. Social Responsibility and Environmental Impact - The company provides financing leasing services to clients in the sewage treatment and renewable energy sectors, supporting green industry development[68]. - The company actively promotes green and paperless office practices[68]. - The company has engaged in social responsibility initiatives, including purchasing agricultural products for consumption assistance and supporting disadvantaged employees[69]. - The company aims to provide financial empowerment for rural revitalization and support local agricultural development[69]. Performance Commitments and Compensation - The company committed to achieving a net profit of no less than RMB 23.6 million, RMB 30 million, and RMB 36 million for the years 2018, 2019, and 2020 respectively, with performance compensation obligations in place[72]. - The company has not completed its performance commitments for the years 2018 to 2020, achieving a completion rate of 98.92% against a cumulative commitment of CNY 89.6 million[107]. - The company is in the process of fulfilling performance compensation obligations due to the unmet commitments, which will affect the release of restricted shares[107]. Financial Reporting and Accounting Practices - The company’s financial statements are prepared based on the going concern principle, with no identified issues affecting its ability to continue operations[160]. - The company adheres to the accounting standards and policies set forth by the relevant authorities, ensuring accurate financial reporting[162]. - The company measures identifiable assets and liabilities acquired in a business combination at fair value on the acquisition date[167].

Financial Performance - Net profit attributable to shareholders decreased by 47.48% year-on-year, totaling CNY 2,394,903.88[6] - Operating revenue declined by 8.59% compared to the same period last year, reaching CNY 107,937,868.67[6] - Basic earnings per share dropped by 47.19% to CNY 0.0047[6] - The weighted average return on equity decreased by 0.18 percentage points to 0.18%[6] - The company reported a significant decrease in fair value changes of financial assets, with a loss of -¥8,303,029.95 compared to -¥16,500.00 in the previous year[12] - The company reported a financial expense of CNY 22,978,821.87 in Q1 2021, down from CNY 26,925,126.84 in Q4 2020[26] - The net profit attributable to shareholders of the parent company was a loss of ¥25,835,664.55, compared to a loss of ¥26,470,590.47 in the same period last year, showing a slight improvement[30] - The total comprehensive income for Q1 2021 was a loss of ¥25,835,664.55, compared to a loss of ¥26,470,590.47 in Q1 2020[30] Cash Flow - Net cash flow from operating activities showed a significant decrease of 684.07%, resulting in a negative CNY 67,205,341.48[6] - Operating cash flow turned negative at -¥67,205,341.48 compared to positive cash flow of ¥11,506,382.86 in the same period last year, mainly due to repayment of operational borrowings[12] - The company reported a net cash outflow from operating activities of ¥67,205,341.48, a significant decline from a net inflow of ¥11,506,382.86 in the previous year[33] - The company received cash inflows from financing activities totaling ¥306,216,000.00, compared to ¥631,879,333.75 in the previous year[34] - The total cash inflow from financing activities in Q1 2021 was ¥301,216,000.00, while the cash outflow was ¥293,410,194.13, resulting in a net cash inflow of ¥7,805,805.87[37] Assets and Liabilities - Total assets decreased by 4.05% from the end of the previous year, amounting to CNY 5,183,958,921.67[6] - Cash and cash equivalents decreased by 51.94% to ¥201,808,945.05 from ¥419,945,545.70 due to loan repayments[12] - Short-term borrowings decreased by 41.97% to ¥225,765,731.00 from ¥389,019,521.85, primarily due to repayment of bank loans[12] - Total liabilities as of March 31, 2021, were CNY 1,472,179,397.66, down from CNY 1,645,080,722.53 at the end of 2020[22] - The company’s total liabilities included ¥706,905,211.29 in long-term borrowings as of Q1 2021[41] - The total assets as of January 1, 2021, were CNY 2,554,563,503.04[46] Shareholder Information - The total number of shareholders reached 51,430 by the end of the reporting period[10] - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., holds 23.57% of the shares, totaling 120,999,907 shares[10] - Total equity attributable to the parent company was CNY 1,248,631,639.98 as of January 1, 2021[42] Research and Development - Research and development expenses rose by 45.03% to ¥1,483,143.17 from ¥1,022,661.59, reflecting increased investment in R&D[12] Other Financial Metrics - The company received government subsidies amounting to CNY 795,796.11 during the reporting period[8] - Long-term prepaid expenses increased by 155.64% to ¥266,247.44 from ¥104,150.75, primarily due to office renovation expenses[12] - Other current liabilities increased by 65.43% to ¥187,218.79 from ¥113,170.83, mainly due to an increase in deductible tax amounts[12] - The company’s total current assets were reported at ¥1,961,212,428.77 as of Q1 2021[40]

Financial Performance - The company reported a net profit attributable to shareholders of -7,999,996.98 RMB for 2020, a decrease of 124.78% compared to the previous year's profit of 32,280,676.58 RMB[5]. - Total operating revenue for 2020 was 492,197,076.87 RMB, representing a decline of 4.89% from 517,512,972.95 RMB in 2019[21]. - The net cash flow from operating activities decreased by 77.20%, amounting to 148,086,840.91 RMB compared to 649,443,174.79 RMB in 2019[21]. - The company plans not to distribute cash dividends or transfer capital reserves to share capital for the 2020 fiscal year, with retained earnings carried forward to the next year[5]. - The company’s revenue from core business activities decreased by 6.65% compared to the previous year[21]. - Basic earnings per share for 2020 was -0.02 CNY, a decrease of 133.33% compared to 0.06 CNY in 2019[23]. - The weighted average return on equity decreased by 3.41 percentage points to -0.64% in 2020 compared to 2.77% in 2019[23]. - In Q4 2020, the net profit attributable to shareholders was -37,140,052.34 CNY, a significant decline compared to Q3 2020's 21,700,697.74 CNY[25]. - The total operating income for Q4 2020 was 136,193,124.44 CNY, showing an increase compared to Q3 2020's 122,945,733.95 CNY[25]. Risk Management - The company faces various risks including market risk, credit risk, and liquidity risk, particularly in its traditional financial services such as financing guarantees and small loans[6]. - The company has taken measures to manage and control various operational risks, as detailed in the report[6]. - The company implemented a risk management system to monitor key projects and potential bad debts, ensuring no major risk events occurred during the reporting period[50]. - The main risks identified include market risk, credit risk, and liquidity risk, with specific focus on foreign exchange and interest rate fluctuations impacting financial instruments[74]. - The company recognizes the competitive risks in the internet financial cloud service market and aims to maintain its market position through product quality and service enhancement[75]. Subsidiaries and Business Segments - The company’s subsidiary, Dexin Guarantee, is a key player in the financing guarantee business, contributing to local economic development[29]. - Dexin Guarantee has diversified its services, including loan guarantees and litigation preservation guarantees, to support small and medium enterprises[29]. - The company’s subsidiary, Deshan Microfinance, focuses on small loans, with a registered capital of CNY 330 million, serving the "three rural issues" and small enterprises[31]. - The financing guarantee industry is facing increased competition and regulatory changes, impacting the operational environment[30]. - The financing leasing segment generated CNY 266 million in revenue, with a gross margin of 74.41%, reflecting a decrease of 1.67 percentage points compared to the previous year[56]. - The small loan segment's revenue was CNY 83.37 million, with a gross margin of 95.31%, down 0.74 percentage points year-on-year[56]. Corporate Governance and Compliance - The company has established a governance structure to ensure all shareholders can enjoy their rights fairly and transparently, with a commitment to accurate and timely information disclosure[123]. - The company has been recognized as a national high-tech enterprise, holding 30 core technologies and software copyrights in its field[41]. - The company has not made any adjustments to the profit distribution policy in the articles of association during the reporting period[79]. - The company has committed to not engage in competitive businesses during the tenure of key personnel and for three years post-employment[83]. - The company has established a robust internal control system to mitigate risks and ensure compliance with regulations[172]. Shareholder Information - The total number of ordinary shareholders increased to 57,911 by the end of the reporting period, up from 51,430 at the end of the previous month[135]. - The top shareholder, Anhui Xinli Technology Group Co., Ltd., holds 120,999,907 shares, representing 23.57% of the total shares, with 84,699,937 shares pledged[138]. - The company is actively managing its shareholder structure, with a focus on maintaining a balanced distribution of shares among major stakeholders[135]. - The company has a controlling shareholder, Anhui New Power Technology Group Co., Ltd., established on August 12, 2010[141]. - The actual controller is the Anhui Provincial Supply and Marketing Cooperative Union, which exercises investment responsibilities through Anhui Supply Group Co., Ltd.[143]. Legal Matters - The company has ongoing significant litigation matters, including a case involving a total of RMB 55.31 million in execution payments received[96]. - The company is currently involved in litigation amounting to 900.00 million RMB, with ongoing execution processes against multiple parties[100]. - The company has reported a total of 1,464.58 million RMB in litigation, with ongoing execution processes against multiple parties[99]. - The company has ongoing litigation involving 4,000.00 million RMB, with a current liability of 2,415.82 million RMB[101]. - The company has a total of 164 lawsuits related to securities false statements, with a total amount involved of approximately ¥127.46 million[105]. Employee and Human Resources - The total number of employees in the parent company and major subsidiaries is 246, with 38 in the parent company and 208 in subsidiaries[165]. - The company has established a comprehensive human resources management system, including training, compensation, and evaluation mechanisms[124]. - The company emphasizes performance-based compensation and efficiency in its salary policy[167]. - The company conducted over 600 training sessions during the reporting period, enhancing employee skills and engagement[166]. - The total pre-tax remuneration for the reporting period amounted to 186.85 million CNY[152]. Future Outlook and Strategy - The company aims to enhance its financial services by integrating internet, big data, and cloud computing technologies, focusing on innovation and self-research[41]. - The company anticipates ongoing economic recovery and reform deepening in 2021, driven by domestic and international dual circulation strategies[68]. - The company aims to enhance its core business by focusing on "finance + technology" strategy, targeting small and micro enterprises, and leveraging rural networks for growth[71]. - In 2021, the company plans to optimize internal controls and improve management levels, emphasizing precise investment and resource allocation for better efficiency[72]. - The company is exploring new paths for rural financial services as part of its strategic transformation following the cessation of new business launches in the financial segment[49].

Financial Performance - Net profit attributable to shareholders was CNY 29,140,055.36, representing a decline of 24.71% year-on-year[8]. - Operating revenue for the period was CNY 356,003,952.43, down 5.85% from the same period last year[8]. - Basic and diluted earnings per share were both CNY 0.06, a decrease of 25% compared to the previous year[8]. - The company’s net profit after deducting non-recurring gains and losses was CNY 29,484,143.44, down 23.82% year-on-year[8]. - Total operating revenue for Q3 2020 was approximately ¥122.95 million, a decrease of 6.5% compared to ¥131.53 million in Q3 2019[29]. - Net profit for Q3 2020 reached approximately ¥44.06 million, an increase of 9.3% from ¥40.30 million in Q3 2019[30]. - The company reported a total comprehensive loss of -15,433,492.32 RMB for Q3 2020, compared to -16,533,556.94 RMB in Q3 2019, showing a reduction in losses of about 6.6%[34]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 5,587,817,540.09, a decrease of 0.04% compared to the end of the previous year[8]. - Total current assets amounted to RMB 2,025,038,359.27 as of September 30, 2020, compared to RMB 2,035,540,485.18 at the end of 2019[20]. - Current liabilities totaled CNY 1,596,697,309.96, down from CNY 1,700,123,101.54 in the previous period, indicating a reduction of approximately 6.5%[22]. - Non-current liabilities increased to CNY 1,400,836,886.85 from CNY 1,298,386,057.30, reflecting an increase of about 7.9%[22]. - The company's total liabilities were CNY 2,997,534,196.81, showing a marginal decrease from CNY 2,998,509,158.84[22]. - The total liabilities of the company stood at CNY 2,998,509,158.84, indicating a stable leverage position[44]. Cash Flow - The net cash flow from operating activities increased by 5.3% to CNY 345,934,790.33 compared to the previous year[8]. - The net cash flow from investing activities was negative RMB 27,297,868.20, a decrease of 193.51% due to payments for the acquisition of Handpay[15]. - The net cash flow from financing activities for Q3 2020 was -315,378,732.07 RMB, an improvement from -589,322,908.80 RMB in Q3 2019, indicating a reduction in outflows of about 46.6%[38]. - Operating cash flow for the first nine months of 2020 was 345,934,790.33 RMB, slightly up from 328,524,083.84 RMB in the same period of 2019, reflecting a growth of about 2.7%[37]. - Cash inflow from investment activities was CNY 11,818,371.18, a decrease of 74% from CNY 45,917,408.66 in the previous year[40]. Shareholder Information - The total number of shareholders at the end of the reporting period was 65,030[11]. - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., held 23.57% of the shares[11]. - Shareholders' equity totaled CNY 2,590,283,343.28, slightly down from CNY 2,591,690,212.21, indicating a decrease of approximately 0.05%[22]. - The total equity attributable to shareholders of the parent company was CNY 1,279,683,041.81, up from CNY 1,258,284,300.61, indicating an increase of about 1.7%[22]. Expenses and Investments - Research and development expenses grew by 116.85% to RMB 2,868,456.56 due to differences during the consolidation period[15]. - Other income increased by 235.72% to RMB 4,796,583.51 primarily from increased tax refunds[15]. - The company reported an investment income of approximately ¥3.80 million for Q3 2020, slightly up from ¥3.73 million in Q3 2019[30]. - Financial expenses for Q3 2020 were approximately ¥10.67 million, a significant decrease of 56.5% from ¥24.52 million in Q3 2019[29]. Risks and Future Outlook - The company anticipates potential goodwill impairment risks by year-end due to the impact of COVID-19 and complex domestic and international situations[16].

Financial Performance - The company's operating revenue for the first half of 2020 was ¥233,058,218.48, a decrease of 5.49% compared to ¥246,590,412.06 in the same period last year[20]. - The net profit attributable to shareholders for the first half of 2020 was ¥7,439,357.62, down 63.12% from ¥20,169,726.64 in the previous year[20]. - The net cash flow from operating activities decreased by 35.29%, amounting to ¥219,918,377.03 compared to ¥339,865,083.61 in the same period last year[20]. - The basic earnings per share for the first half of 2020 was ¥0.01, a decrease of 75% compared to ¥0.04 in the same period last year[21]. - The weighted average return on net assets was 0.59%, down by 1.15 percentage points from 1.74% in the previous year[21]. - The net profit after deducting non-recurring gains and losses was ¥7,378,474.58, down 63.19% from ¥20,045,247.58 in the same period last year[20]. - The company reported a total comprehensive income of CNY 56,221,022.53 for the period, reflecting a significant change in financial performance[136]. - The company reported a total comprehensive income loss of 7,261,410.04 CNY during the reporting period, impacting the retained earnings[147]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,696,227,442.52, reflecting a 1.9% increase from ¥5,590,199,371.05 at the end of the previous year[20]. - The company's total assets decreased to CNY 2,486,907,319.09 from CNY 2,518,267,863.78, reflecting a reduction of 1.2%[120]. - Total liabilities increased to RMB 3,117,500,496.35 from RMB 2,998,509,158.84, reflecting a rise of about 4%[116]. - The company's total liabilities to equity ratio stands at approximately 1.21, indicating a leveraged position[116]. - The company's equity attributable to shareholders decreased slightly to RMB 1,257,982,344.07 from RMB 1,258,284,300.61, a decrease of approximately 0.02%[116]. Cash Flow - The net cash flow from financing activities improved by 55.34% to -¥228,025,333.05 from -¥510,550,619.01 year-on-year[49]. - Cash inflows from operating activities amounted to 497,485,743.01 RMB, an increase from 396,355,023.83 RMB in the first half of 2019[129]. - The ending cash and cash equivalents balance was ¥3,165,124.76, down from ¥80,244,892.33 at the end of the previous year[133]. - The company received cash from interest, fees, and commissions amounting to 182,512,088.10 RMB, a decrease from 221,639,267.98 RMB in the previous year[129]. Operational Risks - The company has identified various operational risks including market risk, credit risk, and liquidity risk, and has implemented measures to manage these risks[8]. - The company faces market, credit, and liquidity risks associated with its traditional financial business operations[54]. Subsidiaries and Business Operations - The company’s subsidiary, Dexin Guarantee, has been operating since December 2006 and has a registered capital of ¥270 million, contributing to local economic development by alleviating financing difficulties for SMEs[26]. - Dexin Guarantee offers various guarantee services, including loan guarantees and litigation preservation guarantees, across multiple industries[26]. - The company’s subsidiary, Dehe Pawn, has been awarded multiple honors for its integrity and contributions to the local economy since its establishment in May 2012[29]. - The company has a total of 13 subsidiaries included in the consolidated financial statements, with ownership stakes ranging from 56.51% to 100%[149]. Legal Matters - The company has no significant litigation or arbitration matters during the reporting period[66]. - The company is involved in multiple lawsuits, with amounts exceeding 10 million RMB, including a case involving 40 million RMB that is currently in the execution process[70]. - The company has reported a total of 3,053.98 million RMB in expected liabilities related to ongoing litigation[70]. Future Outlook and Strategic Initiatives - The report includes a forward-looking statement regarding future plans, emphasizing the importance of investor awareness of potential risks[7]. - The company is actively pursuing a non-public bond issuance, having received a no-objection letter from the Shanghai Stock Exchange for the bond transfer[42]. - The company has committed 500,000 yuan to support COVID-19 prevention efforts and has engaged in poverty alleviation activities in Anhui Province[46]. Shareholder Information - The company’s total share capital is 513,364,429 shares, with 484,000,000 shares being freely tradable[94]. - The largest shareholder, Wang Jian, held 13,157,991 shares at the beginning of the period, with 7,976,120 shares released, resulting in 5,181,871 shares remaining[98]. - The company has a total of 10 major shareholders, with their shareholding details to be disclosed in the report[102]. Accounting and Financial Reporting - The financial statements are prepared based on the enterprise accounting standards, reflecting the company's financial position and operating results accurately[153]. - The company has not disclosed any significant changes in accounting policies or errors requiring restatement during the reporting period[90]. - The company has assessed its ability to continue as a going concern for the next 12 months and found no issues affecting this capability[151].

Financial Performance - Net profit attributable to shareholders decreased by 78.30% to CNY 4,559,884.79 year-on-year[9] - Operating revenue declined by 9.62% to CNY 118,085,793.85 compared to the same period last year[9] - Basic earnings per share dropped by 75.00% to CNY 0.01[9] - The weighted average return on net assets decreased by 1.65 percentage points to 0.36%[9] - Total operating revenue for Q1 2020 was CNY 118,085,793.85, a decrease of 9.6% compared to CNY 130,651,321.27 in Q1 2019[27] - Net profit for Q1 2020 was CNY 28,017,534.01, down 41.3% from CNY 47,872,761.90 in Q1 2019[28] - Basic earnings per share for Q1 2020 were CNY 0.01, down from CNY 0.04 in Q1 2019[28] - The total profit for Q1 2020 was -26,470,590.47 RMB, worsening from -12,867,063.16 RMB in Q1 2019, indicating a decline of approximately 105.1%[30] - The total comprehensive income for Q1 2020 was -26,470,590.47 RMB, compared to -13,058,879.04 RMB in Q1 2019, indicating a decline of approximately 102.5%[31] Assets and Liabilities - Total assets increased by 4.88% to CNY 5,862,870,680.10 compared to the end of the previous year[9] - Total liabilities increased to ¥3,243,162,933.88 from ¥2,998,509,158.84, reflecting a rise in both current and non-current liabilities[21] - The company's total assets as of Q1 2020 amounted to CNY 2,572,772,088.76, compared to CNY 2,518,267,863.78 in the previous year[25] - Total liabilities increased to CNY 1,644,544,203.16 in Q1 2020 from CNY 1,563,569,387.71 in Q1 2019[25] - The company’s total liabilities included long-term borrowings of 1,005,341,602.86 RMB, indicating a significant leverage position[39] - Total liabilities amounted to CNY 2,998,509,158.84, with non-current liabilities totaling CNY 1,298,386,057.30[40] Cash Flow - Net cash flow from operating activities improved significantly by 829.46% to CNY 11,506,382.86[9] - Net cash flow from financing activities decreased by 132.74% to ¥100,651,732.33 due to an increase in borrowings compared to the same period last year[15] - The net cash flow from operating activities for Q1 2020 was 11,506,382.86 RMB, a significant improvement compared to a net outflow of -1,577,376.99 RMB in Q1 2019[32] - Cash inflow from financing activities amounted to 631,879,333.75 RMB, compared to 128,175,000.00 RMB in the previous quarter, indicating a strong increase in financing[36] - The net cash flow from financing activities was 100,651,732.33 RMB, a recovery from a negative cash flow of -240,541,556.46 RMB in the previous quarter[36] Shareholder Information - The total number of shareholders reached 44,548 at the end of the reporting period[13] - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., holds 23.57% of the shares[13] - The company has a repurchase account holding 20,800,000 shares, accounting for 4.05% of total shares[14] Expenses and Costs - Management expenses decreased by 36.78% to ¥17,123,474.17 due to lower labor costs and intermediary fees[15] - Financial expenses increased by 71.07% to ¥26,925,126.84 due to the growth in borrowing scale and funding costs[15] - Credit impairment losses increased by 421.83% to -¥5,157,046.49 primarily due to an increase in overdue assets affected by the pandemic[15] - Financial expenses for Q1 2020 were CNY 26,925,126.84, significantly higher than CNY 15,738,999.49 in Q1 2019[27] Investment Activities - The company reported an investment income of CNY 6,791,430.57 for Q1 2020, compared to CNY 5,475,801.46 in Q1 2019[27] - The investment activities generated a net cash outflow of -155,000.00 RMB in Q1 2020, compared to a net inflow of 224,492.91 RMB in Q1 2019, indicating a shift in investment strategy[33] - The company holds long-term equity investments valued at CNY 2,453,173,434.07, indicating a significant investment strategy[43]

Financial Performance - In 2019, the company's total revenue was CNY 517,512,972.95, a decrease of 2.97% compared to CNY 533,352,197.93 in 2018[21] - The net profit attributable to shareholders was CNY 32,280,676.58, down 39.06% from CNY 52,971,292.95 in the previous year[21] - The net cash flow from operating activities decreased by 20.15% to CNY 649,443,174.79 from CNY 813,343,170.85 in 2018[21] - Basic earnings per share decreased by 45.45% to CNY 0.06 from CNY 0.11[23] - Diluted earnings per share also decreased by 45.45% to CNY 0.06 from CNY 0.11[23] - The weighted average return on equity fell by 3.21 percentage points to 2.77% from 5.98%[23] - The company achieved total revenue of 518 million RMB in 2019, a decrease of 2.97% year-on-year[44] - The net profit for the year was 139 million RMB, down 9.63% year-on-year, with net profit attributable to shareholders decreasing by 39.06% to 32.28 million RMB[44] Asset and Liability Management - The total assets as of the end of 2019 were CNY 5,590,199,371.05, a slight decrease of 0.97% from CNY 5,644,903,614.00 in 2018[21] - The net assets attributable to shareholders increased by 21.24% to CNY 1,258,284,300.61 from CNY 1,037,843,362.79 in 2018[21] - The total liabilities increased, with other payables rising by 196.82% to ¥612,354,481.97, primarily due to an increase in inter-company loans[60] - Total liabilities amounted to approximately 3.36 billion, with current liabilities totaling around 2.21 billion[100] - Non-current liabilities reached approximately 1.15 billion, including long-term borrowings of about 863.48 million[100] Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.20 per 10 shares, totaling CNY 9,851,288.58, which represents 30.52% of the net profit for the year[5] - The company did not issue any bonus shares or increase capital reserves during the year, with remaining undistributed profits carried forward to the next year[5] - A cash dividend of RMB 0.20 per share (including tax) is proposed, amounting to a total of RMB 9,851,288.58, which represents 30.52% of the net profit for the year[80] - The company is committed to a stable cash dividend policy, considering factors such as operational performance and shareholder expectations[78] Acquisitions and Business Expansion - The company completed the acquisition of 100% equity in Shenzhen Shoufu Technology Co., Ltd. in May 2019, facing integration and talent retention risks[8] - The company completed the acquisition of Shoufu Tong, expanding its software and information technology service business[31] - The company completed the acquisition and restructuring of its subsidiary, Handpay, which is expected to yield positive synergies[44] - The company completed the acquisition of 100% equity in Handpay in May 2019, expanding its asset scale and business scope, but faces integration risks[74] - The company completed the acquisition of 100% equity of Shoufu Tong through a combination of cash and stock issuance, with the asset delivery completed in May 2019[138] Risk Management - The company reported significant risks including market risk, credit risk, and liquidity risk associated with its traditional financial services[8] - The company recognizes the need to manage credit risk through strict due diligence and ongoing monitoring of debtors[72] - The company has identified various risks including goodwill impairment, market competition, and product quality risks in the high-tech service industry[75] - The company is committed to improving its internal control systems to ensure compliance and effective risk management across its operations[70] Operational Efficiency - The company aims to enhance liquidity by improving budget systems, optimizing resource allocation, and expanding financing channels[76] - The company has established a monthly communication mechanism post-acquisition to enhance operational efficiency and decision-making[44] - The company is focusing on optimizing its business structure and enhancing service quality across its subsidiaries[44] Compliance and Governance - The company plans to enhance its internal management and governance in accordance with new securities laws, aiming to improve information disclosure and compliance[70] - The company has established a robust internal control system to manage risks in decision-making, finance, and information disclosure[193] - The company has been actively involved in the financial services sector, with key personnel having extensive experience in banking and finance[179] - The company received administrative penalties from the China Securities Regulatory Commission for inflating revenue and profits in the 2015 annual report, leading to disciplinary actions against responsible personnel[182] Employee and Executive Management - The total number of employees in the parent company and major subsidiaries is 295, with 49 technical staff and 4 sales personnel[185] - The total pre-tax compensation for executives during the reporting period amounted to 343.72 million yuan[175] - The company has established a performance evaluation mechanism for senior management, linking their compensation to company performance and individual contributions[199] - The company has a structured remuneration system for its directors and senior management based on their roles and performance[180] Legal Matters - The company has no significant litigation or arbitration matters reported for the year[112] - The company has recognized an impairment provision of RMB 91.858 million related to litigation matters[126] - The company has successfully executed claims amounting to RMB 708.85 million from a lawsuit against a client for overdue rent[115] Environmental and Social Responsibility - The company actively participated in poverty alleviation efforts, donating 150,000 yuan to targeted assistance projects[142] - The company supports green industry development by providing financing leasing services to clients such as sewage treatment plants[144] - The company has implemented green office practices and paperless operations[144] - The company is not listed as a major polluter and has not experienced significant environmental incidents during the reporting period[144]

Financial Performance - Operating revenue for the first nine months was approximately CNY 378.12 million, down 3.17% from the same period last year[6]. - Net profit attributable to shareholders for the first nine months was approximately CNY 38.70 million, an increase of 1.80% year-on-year[6]. - The weighted average return on equity increased by 1.48 percentage points to 3.38%[6]. - The company maintained basic and diluted earnings per share at CNY 0.08[6]. - Total operating revenue for Q3 2019 was ¥131,526,313.23, an increase from ¥115,404,584.66 in Q3 2018, representing a growth of approximately 13.5%[25]. - Net profit for Q3 2019 reached ¥40,304,425.59, compared to ¥19,145,427.13 in Q3 2018, reflecting an increase of approximately 110%[26]. - The company reported a profit margin of approximately 30.6% for Q3 2019, up from 16.6% in Q3 2018[26]. - Basic and diluted earnings per share for Q3 2019 were both CNY 0.04, compared to CNY 0.01 in Q3 2018, marking a 300% increase[27]. Assets and Liabilities - Total assets at the end of the reporting period were approximately CNY 5.57 billion, a decrease of 1.38% compared to the end of the previous year[6]. - The company’s total liabilities decreased to CNY 3,200,000,000.00, reflecting a reduction in short-term and long-term borrowings[18]. - Total liabilities decreased from ¥3,363,332,366.98 to ¥2,991,059,725.52, a reduction of approximately 11%[19]. - Total current liabilities increased from ¥1,235,378,692.88 to ¥1,366,950,242.06, an increase of approximately 11%[24]. - The company’s total other payables were CNY 206,303,209.57, including interest payable of CNY 18,674,834.96 and dividends payable of CNY 12,170,000.00[37]. Cash Flow - The net cash flow from operating activities for the first nine months was approximately CNY 328.52 million, a decrease of 44.78% compared to the previous year[6]. - Cash flow from operating activities for the first three quarters of 2019 was CNY 328,524,083.84, down from CNY 594,963,133.69 in the same period of 2018[31]. - Cash inflow from financing activities for the first three quarters of 2019 resulted in a net outflow of CNY 589,322,908.80, compared to a net outflow of CNY 574,234,091.95 in the same period of 2018[31]. - The net increase in cash and cash equivalents for Q3 2019 was -CNY 178,920,346.33, compared to -CNY 71,232,796.13 in Q3 2018, indicating a decline of 151.1%[34]. Shareholder Information - The total number of shareholders at the end of the reporting period was 24,001[10]. - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., held 23.57% of the shares, totaling approximately 120.99 million shares[10]. Investment and Growth - Research and development expenses for the first three quarters of 2019 totaled ¥1,322,788.23, indicating ongoing investment in innovation[25]. - The company recorded investment income of ¥17,965,687.95 for the first three quarters of 2019, compared to ¥12,266,556.94 in the same period of 2018, marking a growth of approximately 46%[25]. - The company anticipates a decline in financial business scale by year-end, with potential goodwill impairment risks due to economic pressures and regulatory changes[13]. - The company is focusing on risk management strategies in response to the economic downturn and regulatory changes affecting the industry[13].

Financial Performance - The company's operating revenue for the first half of 2019 was ¥246,590,412.06, a decrease of 10.36% compared to ¥275,081,523.24 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2019 was ¥20,169,726.64, down 35.97% from ¥31,500,385.76 in the previous year[19]. - The net cash flow from operating activities was ¥339,865,083.61, a decrease of 3.58% compared to ¥352,474,019.67 in the same period last year[19]. - Basic earnings per share for the first half of 2019 were ¥0.04, a decrease of 42.86% from ¥0.07 in the same period last year[20]. - The weighted average return on net assets was 1.74%, down 1.63 percentage points from 3.37% in the previous year[20]. - Operating revenue decreased by 10.36% year-on-year to ¥246,590,412.06, primarily due to a reduction in operational scale[45]. - Operating costs fell by 8.40% year-on-year to ¥42,567,027.29, also attributed to a decrease in operational scale[45]. - Management expenses increased by 33.40% year-on-year to ¥60,083,721.06, mainly due to the consolidation of Handputong's expenses[45]. - Financial expenses decreased by 18.13% year-on-year to ¥47,751,837.01, primarily due to a reduction in financing scale[45]. - The company reported a total comprehensive income for the first half of 2019 was also a loss of CNY 7,261,410.04, compared to a total of CNY 18,354,192.74 in the first half of 2018[118]. Assets and Liabilities - The total assets at the end of the reporting period were ¥5,677,410,079.31, an increase of 0.58% from ¥5,644,903,614.00 at the end of the previous year[19]. - The total liabilities decreased to ¥3,121,626,139.48 from ¥3,363,332,366.98, representing a reduction of approximately 7.2%[107]. - Shareholders' equity rose to ¥2,555,783,939.83, up from ¥2,281,571,247.02, marking an increase of around 12.0%[107]. - Cash and cash equivalents were reported at ¥401,922,493.43, down from ¥575,776,711.01, a decline of approximately 30.2%[105]. - Accounts receivable increased significantly to ¥25,452,164.94 from ¥3,777,651.17, showing a growth of about 576.5%[105]. - Short-term borrowings decreased to ¥271,149,000.00 from ¥593,773,000.00, a reduction of approximately 54.3%[106]. - The total liabilities at the end of the period were CNY 1,281,248,073.27, which is a slight increase from CNY 1,274,535,866.56 at the beginning of the year[130]. Acquisitions and Business Expansion - The company completed the acquisition of 100% equity in Shenzhen Shoufu Technology Co., Ltd. in May 2019, facing integration and talent retention risks[7]. - The company completed the acquisition of Shoufu Tong, expanding its software and information technology services business[25]. - In May 2019, the company acquired 100% equity of Handpay, expanding its asset scale and business scope, but faces integration and talent retention risks[54]. - The company has been recognized as a benchmark enterprise in the small loan industry, receiving multiple awards for its contributions to local economic development[28]. Risk Management - The company operates in various financial services including financing guarantees, microloans, and financing leasing, which may face market, credit, and liquidity risks[7]. - The report includes a risk statement regarding potential future plans and investment risks, advising investors to exercise caution[6]. - The company emphasizes risk prevention and aims to provide sustainable financing support for small and micro enterprises and the agricultural sector[29]. - The company has implemented a series of credit risk management measures, significantly reducing the credit risk it bears[53]. - The company monitors both short-term and long-term liquidity needs to ensure sufficient cash reserves and commitments from major financial institutions[54]. Legal and Compliance Issues - There were no significant lawsuits or arbitration matters reported during the reporting period[62]. - The company is involved in multiple lawsuits, with one case involving a claim of 3,862.56 million yuan, which was ruled in favor of the company[64]. - The company has ongoing litigation with amounts below 10 million yuan, totaling 2,211.05 million yuan in claims[64]. - The company has reported a total of 9,773.96 million RMB in impairment provisions related to ongoing litigation[70]. - As of June 30, 2019, there are 160 lawsuits filed against the company for securities false statement liability, with a total claim amount of 59.24 million RMB[70]. Shareholder and Equity Management - The company has committed to ensuring that the net profit (after deducting non-recurring gains and losses) for the years 2018-2020 will not be lower than RMB 23.6 million, RMB 30 million, and RMB 36 million respectively[58]. - The company has issued shares to the commitment parties as part of the transaction[59]. - The company appointed Rongcheng Accounting Firm as the auditor for the 2019 fiscal year, following the approval at the 2018 annual shareholders' meeting[62]. - The company’s major shareholders and executives committed to using at least 30% of their annual performance salary for share repurchases starting from 2018[61]. - The company has a strategy to manage shareholder equity through repurchase and performance commitments[93]. Financial Reporting and Accounting Policies - The financial statements are prepared in RMB, with no specific financial figures disclosed in the provided content[104]. - The company has implemented new financial instrument standards effective January 1, 2019, impacting accounting policies and estimates[85]. - The report indicates no significant accounting errors that require retrospective restatement during the reporting period[82]. - The company adheres to the accounting standards and policies, ensuring that the financial statements accurately reflect its financial position and performance[145]. - The company evaluates its subsidiaries based on control, including structured entities that do not rely solely on voting rights[151]. Corporate Social Responsibility - The company actively participates in targeted poverty alleviation efforts, supporting villages in Anhui Province through donations and consumption assistance[79]. - The company has not reported any significant environmental incidents during the reporting period and supports green industry development through financing services[80].