Financial Performance - The company reported a net profit of RMB 50 million for the first half of 2021, representing a 20% increase compared to the same period last year[13]. - The company recorded a net profit of RMB 43.4 million for the six months ended June 30, 2021, up from RMB 11.4 million for the same period in 2020[64]. - The net profit for the period was RMB 43,399,631, up from RMB 11,367,049 in the previous year, indicating an increase of 282.5%[137]. - The pre-tax profit for the six months ended June 30, 2021, was RMB 57,183,510, significantly higher than RMB 14,982,511 for the same period in 2020, marking an increase of about 281%[147]. - The company reported a significant increase in profit before tax, reaching RMB 57,183,510, compared to RMB 14,982,511 for the same period last year, representing a growth of 281.5%[137]. - The net profit for the six months ended June 30, 2021, was RMB 32,739,134, compared to RMB 6,463,136 for the same period in 2020, indicating a significant increase of approximately 404%[147]. Loan Portfolio and Growth - Total loan portfolio reached RMB 1.2 billion, with a year-on-year growth of 15%[13]. - The total amount of loans issued was RMB 953 million as of June 30, 2021, compared to RMB 876 million as of December 31, 2020, reflecting a growth of approximately 8.8%[78]. - The company's loan principal balance increased from RMB 869.9 million as of December 31, 2020, to RMB 946.5 million as of June 30, 2021, reflecting a recovery in the economy post-pandemic[20]. - The overdue loan principal increased from RMB 70.7 million (8.1% of total loans) as of December 31, 2020, to RMB 123.2 million (13.0% of total loans) as of June 30, 2021, primarily due to temporary cash flow difficulties faced by borrowers[25]. - The total value of loans and receivables as of June 30, 2021, was RMB 957,235,202, compared to RMB 886,495,332 on December 31, 2020, indicating a growth of 8.0%[190]. Risk Management - A focus on risk management has led to a reduction in non-performing loans to 1.5% of the total loan portfolio[13]. - The non-performing loan ratio decreased from 9.9% as of December 31, 2020, to 8.7% as of June 30, 2021, with non-performing loans amounting to RMB 83,295 thousand[29][34]. - The provision coverage ratio increased to 61.4% as of June 30, 2021, compared to 60.3% as of December 31, 2020[29]. - The company has implemented strict controls on outstanding loans to mitigate credit risk, with regular reviews of overdue balances[187]. Revenue and Income - Interest income for the first half of 2021 was RMB 66,456 thousand, down from RMB 143,540 thousand for the full year of 2020[29]. - The interest income from loans and receivables was RMB 66,894,102, down from RMB 69,267,800 in 2020, indicating a decline of approximately 3.4%[162]. - The company’s interest income from loans and finance lease receivables primarily comes from non-performing loans[45]. - The company reported a total impairment loss provision of RMB 51.5 million as of June 30, 2021, slightly down from RMB 52.9 million as of December 31, 2020[76]. Operational Efficiency - The company is investing RMB 5 million in technology upgrades to enhance its loan processing efficiency[13]. - Total operating and management expenses decreased from RMB 126.75 million for the six months ended June 30, 2020, to RMB 119.16 million for the six months ended June 30, 2021, primarily due to reduced depreciation of right-of-use assets and amortization of intangible assets[57]. - Net cash flow from operating activities increased significantly to RMB 94.54 million for the six months ended June 30, 2021, compared to RMB 54.81 million for the same period in 2020[67]. Shareholder Information - As of June 30, 2021, the company had a total issued share capital of 680,000,000 shares, including 180,000,000 H shares and 500,000,000 domestic shares[107]. - The company declared dividends to shareholders amounting to RMB 34,000,000 during the first half of 2021, consistent with the previous year's dividend distribution[147]. - The company has not declared any interim dividends for the six months ending June 30, 2021[128]. Corporate Governance - The audit committee reviewed the accounting principles and internal controls, confirming no disagreements with the auditors[130]. - The board of directors has fully complied with the corporate governance code during the reporting period[122]. - The company has a commitment to maintaining high levels of corporate governance and protecting shareholder rights[122]. Market Expansion and Strategy - The company plans to expand its market presence in Fujian province, targeting a 10% increase in customer base by the end of 2021[13]. - The company is exploring potential acquisition opportunities to diversify its service offerings and enhance competitive advantage[13]. - The company aims to leverage internal and external favorable conditions to actively develop and provide better services to customers[103].
汇鑫小贷(01577) - 2021 - 中期财报