Financial Performance - For the six months ended June 30, 2024, the company reported interest income of RMB 102,616,000, a decrease of 16.2% from RMB 122,463,000 in the same period of 2023[3]. - Net interest income for the same period was RMB 81,431,000, down 16.2% from RMB 97,206,000 year-on-year[3]. - The company recorded other net income of RMB 17,408,000, compared to a loss of RMB 13,834,000 in the previous year, indicating a significant improvement[3]. - Total profit and comprehensive income for the period was RMB 46,626,000, a decrease of 20.6% from RMB 58,753,000 in the prior year[3]. - Basic and diluted earnings per share were RMB 0.04, down from RMB 0.05 in the same period last year[3]. - The company's net profit for the six months ended June 30, 2024, was approximately RMB 44.9 million, compared to RMB 56.1 million for the same period in 2023, reflecting a decrease of about 20.1%[23]. - The company's net profit and total comprehensive income for the six months ended June 30, 2023, was RMB 58.8 million, compared to RMB 46.6 million for the six months ended June 30, 2024, reflecting a decline of approximately 20.0%[91]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 2,608,539,000, a decrease from RMB 2,657,317,000 at the end of 2023[4]. - Total liabilities decreased to RMB 586,199,000 from RMB 654,603,000 at the end of 2023, reflecting a reduction of 10.4%[4]. - The company's net assets increased to RMB 2,022,340,000 from RMB 2,002,714,000, showing a slight growth of 1%[4]. - The total amount of loans and advances to customers as of June 30, 2024, was RMB 2,660,517 thousand, a decrease of 2.2% from RMB 2,720,846 thousand as of December 31, 2023[26]. - The total liabilities and other payables decreased by RMB 4.6 million from RMB 23,290 thousand as of December 31, 2023, to RMB 18,678 thousand as of June 30, 2024[101]. - The current tax payable was RMB 34.9 million as of December 31, 2023, and decreased to RMB 16.3 million as of June 30, 2024[102]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 96.7 million, reflecting a pre-tax profit of RMB 64.5 million[92]. - Cash and cash equivalents rose to RMB 24,755,000 from RMB 17,478,000, indicating a significant increase of 41.7%[4]. - The net cash used in financing activities for the six months ended June 30, 2024, was RMB 89.5 million, primarily due to interest payments and loan repayments[93]. - The company’s cash flow from operating activities showed a decrease in cash and cash equivalents, indicating potential liquidity challenges moving forward[25]. Loans and Advances - The total outstanding loans and advances to customers amounted to RMB 2,470,995 thousand as of June 30, 2024, compared to RMB 2,522,351 thousand as of December 31, 2023[59]. - The overdue loans totalled RMB 124,812 thousand as of June 30, 2024, which includes RMB 76,713 thousand overdue for more than one year[28]. - The retail loans segment accounted for 57% of the total loans and advances to customers, amounting to RMB 1,500,932 thousand as of June 30, 2024, compared to RMB 1,526,958 thousand as of December 31, 2023[27]. - The majority of loans provided were guaranteed loans, accounting for approximately 97.9% and 97.8% of total loans and advances as of December 31, 2023, and June 30, 2024, respectively[99]. - The company has maintained a high percentage of loans under RMB 1 million, with 76.3% of loans falling within this range as of June 30, 2024[79]. Impairment and Credit Loss - The provision for impairment losses on loans was RMB (189,522) thousand as of June 30, 2024, compared to RMB (198,495) thousand as of December 31, 2023, showing a reduction of about 4.4%[26]. - The impairment loss provision for loans amounted to RMB 189.522 million as of June 30, 2024, reflecting the company's risk management strategy[80]. - The company's impaired loan balance decreased from RMB 124.5 million to RMB 104.6 million, representing a reduction of approximately 18.9%[83]. - The overdue loan balance decreased from RMB 124.8 million to RMB 104.9 million, reflecting a decline of about 16%[84]. - The impairment loan ratio improved from 4.6% to 3.9%, indicating enhanced loan portfolio quality[81]. Dividends and Shareholder Returns - The company approved dividends amounting to RMB 47,200 thousand for the previous fiscal year[8]. - The approved cash dividend for the fiscal year 2023 is RMB 23.6 million, equating to RMB 0.02 per share, down from RMB 47.2 million (RMB 0.04 per share) for the previous fiscal year[43]. - The board has decided not to declare any interim dividend for the six months ending June 30, 2024, consistent with the previous year[121]. Strategic Initiatives - The company aims to explore sustainable green credit pathways and has been recognized as the first green microfinance company in Huzhou since April 2020, participating in the formulation of local standards for green microfinance[116]. - The company has positioned itself as a green micro-lending company, focusing on financing for ecological agriculture, renewable energy, and energy-saving projects[77]. - The company has partnered with DEG and GCPF to gain international support for developing more green loan products[116]. Risk Management - The group faces credit risk primarily from its micro-lending and treasury operations, with policies in place to manage these risks effectively[51]. - The credit risk primarily arises from the microloan business, with mechanisms established for pre-loan assessment, credit approval, and post-loan monitoring[52]. - The company does not generally obtain collateral from customers for loans[55]. - The company faces geographical concentration risk as it primarily operates in Zhejiang Province, which may be affected by economic fluctuations[54].
佐力小贷(06866) - 2024 - 中期业绩