Revenue and Profitability - For the six months ended June 30, 2021, the company's revenue increased by approximately RMB 7.0 million or 43.4% to approximately RMB 23.1 million compared to the same period in 2020[11]. - The group's profit before tax increased by approximately 69.9% from about RMB 2.9 million to approximately RMB 4.9 million during the reporting period, primarily due to a decrease in loss provisions and an increase in revenue[20]. - The company reported a profit before tax of RMB 4,884,661 for the six months ended June 30, 2021, compared to RMB 2,874,868 in 2020, marking an increase of about 70%[59]. - The net profit attributable to the owners of the company for the six months ended June 30, 2021, was RMB 3,783,615, up from RMB 690,707 in 2020, representing a growth of approximately 447.5%[59]. - Total revenue for the six months ended June 30, 2021, was RMB 23,101,630, an increase from RMB 16,106,959 in the same period of 2020, representing a growth of approximately 43.5%[57]. Income and Expenses - Interest income from the sale and leaseback arrangements was approximately RMB 10.1 million, an increase of approximately RMB 4.7 million or 87.5% compared to RMB 5.4 million in the same period last year[11]. - Revenue from financing leasing consulting services rose to approximately RMB 6.1 million, an increase of approximately RMB 3.5 million or 132.2% from RMB 2.6 million in the previous year[11]. - Employee costs increased to approximately RMB 6.6 million, a rise of approximately 7.9% from RMB 6.2 million in the same period last year[15]. - Other operating expenses surged to approximately RMB 8.4 million, an increase of approximately RMB 4.8 million or 130.1% compared to RMB 3.6 million in the same period last year[16]. - The group's financing costs during the reporting period were approximately RMB 5.4 million, an increase of about RMB 2.4 million or approximately 78.4% compared to RMB 3.0 million in the same period last year[17]. Cash Flow and Financial Position - The net cash used in operating activities during the reporting period was approximately RMB 16.3 million, compared to RMB 9.9 million in the same period last year[23]. - The net cash generated from financing activities during the reporting period was approximately RMB 13.7 million, compared to a net cash used of approximately RMB 13.4 million in the same period last year[23]. - As of June 30, 2021, the group's bank deposits and cash amounted to approximately RMB 18.7 million, down from approximately RMB 25.2 million as of June 30, 2020[22]. - The company's total liabilities increased to RMB 115,521,683 from RMB 103,190,752 in the previous year[61]. - The company's cash and cash equivalents at the end of the reporting period were RMB 18,658,246, compared to RMB 25,171,144 at the end of the previous year[66]. Asset Quality and Provisions - The asset quality of leasing receivables began to improve due to the recovery of most clients in the transportation and logistics industry[8]. - The group recorded a reversal of loss provisions for finance lease receivables and sale-leaseback arrangements of approximately RMB 1.5 million during the reporting period, compared to a provision of approximately RMB 1.1 million in the same period last year[18]. - The company reported a loss allowance of RMB 1,450,851 for the six months ended June 30, 2021, compared to a loss of RMB 1,127,789 in 2020, indicating an increase in provisions[57]. - The loss provision for finance lease receivables decreased to RMB 40,183,042 as of June 30, 2021, down from RMB 45,398,762 at the beginning of the year[100]. - The loss provision for sale and leaseback receivables increased to RMB 1,736,636 as of June 30, 2021, from RMB 960,449 at the beginning of the year[106]. Corporate Governance and Compliance - The company maintains compliance with the corporate governance code as per GEM listing rules, with all provisions adhered to except for a deviation in A.2.1[40]. - The company has adopted the GEM listing rules regarding securities trading as its code of conduct, ensuring compliance during the reporting period[43]. - The company will continue to review the separation of the roles of chairman and CEO as appropriate for its overall situation[40]. - The company has confirmed that all directors and relevant employees complied with the securities trading code during the reporting period[43]. - The company’s governance practices are based on the principles and provisions outlined in the corporate governance code, ensuring transparency and accountability[40]. Future Plans and Market Position - The company plans to consider establishing new subsidiaries to enhance its involvement in factoring business and expand into more profitable leasing markets such as medical equipment and cultural industries[9]. - China's GDP grew by approximately 12.7% in the first half of 2021 compared to the same period in 2020, contributing to the recovery of the company's business[8]. - The company agreed to provide a factoring revolving limit of up to approximately RMB 9,000,000 to a client under factoring agreements dated July 14 and July 28, 2021[39]. - The company entered into multiple financing lease agreements on July 8, 2021, involving the purchase of luxury cars for a total price of RMB 4,287,000[39]. - The company operates primarily in China, with specific non-current assets located in the same region[75].
METROPOLIS CAP(08621) - 2021 - 中期财报