Economic Performance - In the first half of 2021, China's GDP was RMB 53,216.7 billion, with a year-on-year growth of 12.7%[26]. - The first quarter GDP growth was 18.3%, while the second quarter growth was 7.9%[26]. - The two-year average growth rate for the first half of 2021 was 5.3%, which was 0.3 percentage points faster than the first quarter[26]. - The scale of imports and exports in the first half of the year increased by 27.1% compared to the same period last year[26]. - Monthly imports and exports achieved positive year-on-year growth for 13 consecutive months[26]. - The national economy showed a steady and positive development trend despite challenges from the COVID-19 pandemic[26]. - The overall economic recovery in China is supported by government initiatives and structural reforms[26]. Company Financial Performance - In the first half of 2021, the Group recorded revenue of RMB144.03 million, a year-on-year decrease of 2.35%, and profit of RMB57.56 million, a decrease of 9.25% compared to the same period in 2020[29][34]. - Net guarantee fee income for the first half of 2021 was approximately RMB88.19 million, remaining stable compared to RMB89.00 million in the same period of 2020[37][40]. - Net interest income decreased by approximately RMB2.37 million, or 5.51%, to approximately RMB40.60 million for the six months ended June 30, 2021, primarily due to a 33.72% year-on-year increase in interest expenses[38][41]. - The Group's profit for the six months ended June 30, 2021, decreased by approximately RMB 5.86 million, or approximately 9.24%, to approximately RMB 57.56 million from approximately RMB 63.42 million for the corresponding period in 2020[67]. - The net profit margin decreased to approximately 39.96% for the six months ended June 30, 2021, down from approximately 43.00% for the same period in 2020[73]. Financing and Guarantees - As of June 30, 2021, the total outstanding guarantees exceeded RMB10,356.87 million, representing an increase of approximately 10.96% compared to December 31, 2020[35][39]. - The balance of inclusive finance loans reached RMB24.76 trillion by the end of Q2 2021, marking a year-on-year increase of 25.5%[29][31]. - The Group's total maximum guarantee granted increased by 11.51% compared to June 30, 2020[29][31]. - The Group's financing guarantee industry is supported by government policies aimed at revitalizing small and medium-sized enterprises (SMEs) affected by COVID-19[29][31]. - The Group aims to alleviate financing difficulties for SMEs by implementing a policy-based guarantee fund business, leveraging a three-tiered financial risk-sharing mechanism[89]. Revenue and Expenses - Interest income from micro-lending decreased by approximately RMB3.91 million, or 15.10%, to approximately RMB21.99 million for the six months ended June 30, 2021[44]. - Operating expenses increased by approximately RMB4.11 million, or approximately 9.02%, to approximately RMB49.70 million for the six months ended June 30, 2021 from approximately RMB45.59 million for the corresponding period in 2020[59]. - Income tax decreased by approximately RMB1.08 million, or approximately 5.09%, to approximately RMB20.14 million for the six months ended June 30, 2021 from approximately RMB21.22 million for the corresponding period in 2020[61]. - Other revenue decreased by approximately RMB8.97 million, or approximately 62.55%, to approximately RMB5.37 million for the six months ended June 30, 2021 from approximately RMB14.34 million for the corresponding period in 2020[51]. Capital and Investments - Capital expenditures for the six months ended June 30, 2021, amounted to approximately RMB 1.24 million, primarily related to the acquisition of office equipment and R&D expenses[68]. - The Group's cash and cash equivalents amounted to approximately RMB 1,130.61 million[102]. - The Group's interest-bearing borrowings were approximately RMB 66.60 million, with RMB 21.00 million at a fixed interest rate of 11.50%[108]. - The Group issued debt securities valued at approximately RMB 262.50 million, with a coupon rate of 4.60% per annum[110]. - Approximately HK$120.00 million was allocated to develop financing guarantee business and establish new subsidiaries and branches in Guangdong Province[115]. Regulatory Environment - The PRC government continues to impose strict regulations on the financial industry, complicating approval processes for investments[143]. - The regulatory environment for the financing guarantee industry is expected to be gradually refined, promoting industry development while improving quality[88]. - The company has revised the expected time of utilization of the remaining proceeds due to stringent regulatory measures in the PRC financial industry[142]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and chief executive officer[193]. - The Audit Committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2021, ensuring compliance with Hong Kong Accounting Standard 34[186]. - The Company is committed to maintaining high standards of corporate governance to protect the interests of its shareholders[191]. Shareholding Structure - The total issued domestic shares and H Shares of the Company were 1,006,429,353 and 554,363,334, respectively, as of June 30, 2021[161]. - Fojin HK held 164,164,000 H Shares, representing approximately 29.61% of the H Shares and 10.52% of the total share capital of the Company[171]. - The largest shareholder, Dragon Pearl, owned 93,472,000 H Shares, accounting for 16.86% of the H Shares and 5.99% of the total share capital[171]. Staff and Human Resources - As of June 30, 2021, the total number of staff within the Group was 303, a decrease from 315 as of December 31, 2020[150]. - Staff costs for the six months ended June 30, 2021, amounted to approximately RMB 34.42 million, including salaries, wages, bonuses, and other benefits[150].
中盈盛达融资担保(01543) - 2021 - 中期财报