Financial Performance - For the six months ended June 30, 2019, the company recorded interest income of approximately RMB 555 million, an increase of about 1.7% compared to RMB 546 million for the same period in 2018[45]. - The company's net profit after tax for the same period was approximately RMB 304 million, a decrease of about 12.5% from RMB 347 million in 2018, primarily due to increased expenses related to the transfer to the main board of the Hong Kong Stock Exchange amounting to approximately RMB 74 million[45]. - The company reported a pre-tax profit of RMB 40,343,405 for the first half of 2019, down from RMB 46,444,352 in 2018, representing a decrease of 13.5%[143]. - The net profit attributable to shareholders for the period was RMB 30,385,417, compared to RMB 34,717,665 in the previous year, indicating a decline of 12.7%[143]. - The company's profit after tax and total comprehensive income decreased by approximately 12.5% from RMB 34.7 million for the six months ended June 30, 2018, to RMB 30.4 million for the six months ended June 30, 2019[89]. - Basic and diluted earnings per share for the first half of 2019 were both RMB 0.05, down from RMB 0.06 in the same period of 2018[143]. Assets and Liabilities - Total assets as of June 30, 2019, were approximately RMB 8,609 million, a 4.0% increase from RMB 8,275 million as of December 31, 2018[48]. - The company's total liabilities as of June 30, 2019, were RMB 19,234,357, up from RMB 16,146,427 at the end of 2018, reflecting an increase of 12.9%[145]. - The company’s retained earnings increased to RMB 138,621,960 as of June 30, 2019, compared to RMB 108,236,543 at the end of 2018, showing a growth of 28.1%[145]. - The total amount of overdue loans was RMB 14,564 thousand as of June 30, 2019, slightly down from RMB 14,694 thousand as of December 31, 2018[74]. - The total expected credit loss (ECL) increased to RMB 27,770,318 for the six months ended June 30, 2019, comprising RMB 18,245,591 in Stage 1, RMB 373,730 in Stage 2, and RMB 9,150,997 in Stage 3[195]. Loans and Receivables - As of June 30, 2019, the outstanding loans (before impairment losses) amounted to approximately RMB 8,631 million, an increase of about 2.6% from RMB 8,415 million as of December 31, 2018[45]. - The average daily balance of receivable loans rose from RMB 824.3 million for the six months ended June 30, 2018, to RMB 850.0 million for the same period in 2019, reflecting a growth of approximately 3.0%[81]. - The company reported a total of 241 loans as of June 30, 2019, compared to 239 loans as of June 30, 2018[55]. - Loans receivable as of June 30, 2019, were RMB 863,132,864, up from RMB 841,515,947 at the end of 2018, indicating an increase of 2.6%[182]. - The proportion of guaranteed loans increased to 95.5% of total loans as of June 30, 2019, compared to 95.2% as of December 31, 2018[55]. Expenses and Income - Administrative expenses increased by approximately 146.2% from RMB 5.9 million for the six months ended June 30, 2018, to RMB 14.5 million for the six months ended June 30, 2019, primarily due to increased professional service fees related to the transfer listing[85]. - Net other income for the six months ended June 30, 2018, and June 30, 2019, was RMB 292,878 and RMB 69,523, respectively, with the decrease attributed to reduced gains from the sale of fixed assets and guarantee fee income[87]. - Income tax expenses decreased by approximately 15.1% from RMB 11.7 million for the six months ended June 30, 2018, to RMB 10.0 million for the six months ended June 30, 2019, mainly due to a decrease in profit before tax[88]. - The company recorded a significant increase in administrative expenses, which rose to RMB 14,506,991 from RMB 5,892,567 in the previous year, representing a rise of 146.9%[143]. - Other income, net for the six months ended June 30, 2019, was RMB 69,523, a decrease from RMB 292,878 in 2018, reflecting a decline of 76.3%[174]. Shareholder Structure - Jiangsu Baitai Group holds approximately 40.03% equity in the company, with 240,200,000 shares of domestic stock, representing 53.38% of the relevant share class[110]. - Mr. Bai Wanlin controls 95.58% of the domestic shares, totaling 430,100,000 shares, which accounts for 71.68% of the total equity[110]. - The company has a significant shareholder structure, with major stakeholders including Jiangsu Baitai Group and Lian Tai Plaza, which holds about 31.65% equity[112]. - The equity structure indicates a strong control by the Bai family over the company and its subsidiaries[112]. - The controlling shareholder pledged 45,000,000 shares and 35,000,000 shares as collateral for bank financing amounting to RMB 40,000,000 and RMB 30,000,000 respectively, representing approximately 18.6% of the total domestic shares held by the controlling shareholder[125]. Corporate Governance - The audit committee reviewed the interim report and found that the financial statements complied with applicable accounting standards and legal requirements[131]. - The company has adhered to the corporate governance code as per listing rules during the reporting period[132]. - The company has established a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with the required standards[134]. - The independent review report concluded that there were no matters that would lead to a belief that the interim financial information was not prepared in accordance with International Accounting Standard 34[140]. - The company has maintained a public float of at least 25% of its issued shares as required by the listing rules[126]. Investments - The company holds a 10% passive investment in Min Tai Bank and an 8% passive investment in Zhong Cheng Bank, with limited competition between these banks and the company's main business[129][130]. - The company had no significant investments or capital asset plans as of June 30, 2019, and up to the report date[92]. Accounting Policies - The company adopted IFRS 16 on January 1, 2019, resulting in an increase in property, plant, and equipment by RMB 2,626,966[165]. - The lease liabilities are recognized at the present value of lease payments, using the incremental borrowing rate if the implicit rate is not readily determinable[168]. - The company has chosen a modified retrospective approach for the application of IFRS 16, without restating comparative information for 2018[159]. - The company confirmed that the accounting estimates and assumptions remain consistent with those used in the financial statements for the year ended December 31, 2018[169].
泰和小贷(01915) - 2019 - 中期财报