Financial Performance - The company's revenue reached RMB 4.5 billion, representing a year-on-year growth of 57%, while net profit was RMB 410 million, a 54% increase from RMB 266 million in the same period last year[8]. - Total revenue for the six months ended June 30, 2024, reached RMB 4,467,853 thousand, a significant increase from RMB 2,844,190 thousand in the same period of 2023, representing a growth of approximately 57.2%[123]. - Gross profit for the same period was RMB 2,128,937 thousand, compared to RMB 1,423,454 thousand in 2023, indicating a year-over-year increase of about 49.5%[123]. - Operating profit for the six months ended June 30, 2024, was RMB 576,522 thousand, up from RMB 253,962 thousand in 2023, reflecting a growth of approximately 126.7%[123]. - Net profit for the period was RMB 409,676 thousand, compared to RMB 266,395 thousand in the previous year, marking an increase of around 53.6%[123]. - Adjusted net profit reached RMB 507.48 million, a 23% increase from RMB 412.92 million year-over-year[29]. - The total revenue cost rose by 65% year-on-year to RMB 2.34 billion, mainly due to increased commissions and funding costs[34]. Financing and Transactions - In the first half of 2024, Yixin Group achieved a financing transaction volume of 329,000, an increase of 5.3% year-on-year, with a financing amount of RMB 31.5 billion, up 3.5% year-on-year[8]. - The total financing transactions for the reporting period reached 329,000, an increase of 5.3% from 312,000 in the same period last year[20]. - New energy vehicle financing transactions amounted to 70,000, a significant increase of 77.8% compared to 39,000 in the previous year[21]. - The financing amount for new energy vehicles reached RMB 7.1 billion, representing a growth of 63.1% from RMB 4.4 billion year-on-year[21]. - The financing transaction amount facilitated by the financial technology model reached RMB 9.7 billion, a year-on-year increase of 264.1%[12]. - The company expects the financing amount facilitated by its financial technology platform to exceed RMB 20 billion in 2024[12]. Market Trends and Positioning - The total sales of passenger cars in China increased by 6.5% year-on-year in the first half of 2024, with new energy vehicle retail sales growing by 33.1% year-on-year, achieving a penetration rate of 48% in new car retail sales by June 2024[8]. - Yixin Group's financing for new energy vehicles reached RMB 7.1 billion, marking a significant year-on-year growth of 63.1%[8]. - The company has established partnerships with approximately 40 new energy vehicle manufacturers, enhancing its market positioning and growth prospects[11]. - The retail sales of new energy vehicles (NEVs) reached 4.1 million units in the first half of 2024, showing a year-on-year growth of 33.1%[16]. - The penetration rate of NEVs in domestic new car sales reached 48% as of June 2024[16]. Cost and Expenses - The cost of revenue increased by 65% to RMB 2,338.92 million, compared to RMB 1,420.74 million in the previous year[29]. - Sales and marketing expenses rose by 31% to RMB 673.91 million, up from RMB 513.90 million year-over-year[29]. - Research and development expenses increased by 15% to RMB 107.65 million, compared to RMB 93.34 million in the previous year[29]. - The financial cost net amount surged by 955% to RMB 14.51 million, compared to RMB 1.38 million in the previous year[29]. Risk Management and Compliance - The company has implemented a comprehensive risk management and internal control system to address credit risk, which is the primary risk faced by the company[55]. - The overdue rate for all financing transactions (including self-operated financing leasing and trading platform businesses) was 1.47% for over 180 days and 1.86% for over 90 days as of June 30, 2024, showing slight improvements from 1.49% and 1.89% respectively as of December 31, 2023[54]. - The company is continuously assessing compliance with qualification requirements in light of regulatory developments in China[106]. - The board confirmed its responsibility for the risk management and internal control systems, which aim to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[112]. Shareholder Information and Equity - The total number of issued shares as of June 30, 2024, is 6,524,065,512[81]. - The company has granted a total of 341,217,576 shares under the first share incentive plan as of June 30, 2024[87]. - The company plans to terminate the first share incentive plan following the approval of the 2024 share plan[87]. - The total number of shares that may be issued under the 2024 Share Plan is initially set at 10% of the total issued shares as of the plan's adoption date, amounting to 652,406,551 shares[97]. - The company declared dividends amounting to RMB (177,692) thousand during the period, compared to RMB (187,456) thousand in the same period last year[128]. Investments and Acquisitions - The acquisition of Dalian Rongxin Financing Guarantee Co., Ltd. was completed on April 2, 2024, for a cash consideration of RMB 640 million, expanding the company's trading platform business[176]. - The identifiable net assets acquired from Dalian Rongxin amounted to RMB 1,092,963,000, after accounting for the investment in the joint venture and the bargain purchase gain[177]. - The company invested $260 million (approximately HKD 2.04 billion) in convertible bonds from Yusheng, representing a 40.63% equity stake in Yusheng's Pre-A series preferred shares[66]. Cash Flow and Liquidity - Cash and cash equivalents increased by 28% year-on-year to RMB 4,451 million[49]. - The company’s net cash generated from operating activities was RMB 634 million for the reporting period, a decrease from RMB 4.332 billion in the same period last year, mainly due to faster accounts receivable turnover and reduced payments for new financing lease transactions[58]. - The current ratio improved to 1.37 as of June 30, 2024, compared to 1.33 as of December 31, 2023, due to an increase in current assets[62]. - The total borrowings increased to RMB 24.2 billion as of June 30, 2024, from RMB 23.2 billion as of December 31, 2023, driven by business expansion[59]. Employee and Compensation - The total employee compensation cost, including equity incentive expenses, was RMB 507 million for the reporting period, compared to RMB 470 million in the same period last year[68]. - As of June 30, 2024, the company employed 4,303 full-time employees, an increase from 4,231 employees as of December 31, 2023[68]. - The company’s employee benefit expenses increased to RMB 506,922 thousand for the six months ended June 30, 2024, compared to RMB 470,029 thousand for the same period in 2023, marking an increase of approximately 8%[163].
易鑫集团(02858) - 2024 - 中期财报