泰和小贷(01915) - 2024 - 中期业绩

Financial Summary The Group's interest income was RMB 26.0 million, loss after tax reduced to RMB 9.4 million, and outstanding loans grew to RMB 934.5 million Financial Summary for H1 2024 | Indicator | H1 2024 (RMB million) | H1 2023 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Interest Income | 26.0 | 26.1 | -0.4% | | Loss After Tax | (9.4) | (12.8) | Decrease of 3.4 | | Outstanding Loans (before impairment) | 934.5 | 924.0 (as of 2023/12/31) | +1.1% (vs. 2023/12/31) | | Total Assets | 882.3 | 886.9 (as of 2023/12/31) | -0.5% (vs. 2023/12/31) | | Net Assets | 862.0 | 871.7 (as of 2023/12/31) | -1.1% (vs. 2023/12/31) | Interim Condensed Consolidated Financial Statements This section presents the unaudited interim consolidated financial statements for the six months ended June 30, 2024, including key financial data compared to the prior period or December 31, 2023 Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group recorded net interest income of RMB 25,993,431, a pre-tax loss of RMB 12,319,226, and a loss for the period of RMB 9,363,560, narrowing from the prior year Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Interest Income | 26,039,961 | 26,136,280 | | Interest Expense | (46,530) | (37,948) | | Net Interest Income | 25,993,431 | 26,098,332 | | Impairment Losses on Loans and Accounts Receivable and Other Assets | (33,900,099) | (33,896,751) | | Impairment Loss on Goodwill | — | (2,059,114) | | Guarantee Losses | (204,895) | (1,812,055) | | Administrative Expenses | (4,230,284) | (5,241,041) | | Loss Before Tax | (12,319,226) | (16,179,311) | | Income Tax Benefit | 2,955,666 | 3,412,940 | | Loss for the Period | (9,363,560) | (12,766,371) | | Attributable to Owners of the Parent | (9,212,032) | (12,441,421) | | Basic and Diluted Loss Per Share | (0.02) | (0.02) | Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2024, the Group recorded a total comprehensive loss of RMB 9,759,623, primarily due to the loss for the period and net loss on equity investments designated at fair value through other comprehensive income Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Loss for the Period | (9,363,560) | (12,766,371) | | Net Loss on Equity Investments Designated at Fair Value Through Other Comprehensive Income | (396,063) | — | | Total Comprehensive Loss for the Period, Net of Tax | (9,759,623) | (12,766,371) | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets were RMB 882,259,737, total liabilities were RMB 20,293,068, and total equity was RMB 861,966,669, with loans and accounts receivable remaining the primary asset Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 29,671 | 279,027 | | Loans and Accounts Receivable | 861,487,569 | 872,746,195 | | Total Assets | 882,259,737 | 886,917,645 | | Total Liabilities | 20,293,068 | 15,191,353 | | Equity Attributable to Owners of the Parent | 860,423,612 | 869,767,001 | | Total Equity | 861,966,669 | 871,726,292 | Interim Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2024, the Group's total equity decreased from approximately RMB 871.7 million as of December 31, 2023, to approximately RMB 862.0 million, mainly impacted by the loss for the period and fair value changes in equity investments Summary of Changes in Equity | Indicator | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Parent | 860,423,612 | 869,767,001 | | Non-controlling Interests | 1,543,057 | 1,959,291 | | Total Equity | 861,966,669 | 871,726,292 | Interim Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2024, net cash flow from operating activities was RMB 485,642, with no cash flow from investing activities, and net cash outflow from financing activities of RMB 735,000, resulting in a net decrease in cash and cash equivalents Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 485,642 | 390,059 | | Net Cash Flow Used in Investing Activities | — | (37,382) | | Net Cash Flow Used in Financing Activities | (735,000) | — | | Net (Decrease) / Increase in Cash and Cash Equivalents | (249,358) | 352,677 | | Cash and Cash Equivalents at End of Period | 29,671 | 1,992,503 | Notes to the Interim Condensed Consolidated Financial Information This section details the accounting policies, significant judgments, and estimates used in preparing the interim condensed consolidated financial information, along with specific explanations and analyses of items in the statements of profit or loss, financial position, and cash flows, including loans, assets, liabilities, taxes, and related party transactions 1. Company and Group Information Yangzhou Guangling Taihe Rural Micro-finance Co., Ltd. was established in China in 2008, restructured in 2012, listed on GEM in Hong Kong in 2017, and transferred to the Main Board in 2019, primarily providing loans, financing guarantee services, and auto services to "agriculture, rural areas, and farmers" - The company was established in 2008, listed on GEM in Hong Kong in 2017, and transferred to the Main Board in 2019[7] - Its principal activities include providing loans, financing guarantee services, and acting as an agent for auto services and other services to "agriculture, rural areas, and farmers"[7] - The holding company and ultimate holding company is Jiangsu Baitai Group Co., Ltd[7] Information on Subsidiaries The Group's main subsidiaries include Hainan Luhang Jianche Technology Co., Ltd., Hainan Jialan Information Technology Co., Ltd., Shenzhen Taiyuan Biotechnology Co., Ltd., and Shenzhen Herun Biotechnology Co., Ltd., primarily engaged in internet and related services Overview of Principal Subsidiaries | Company Name | Place of Incorporation and Operation | Type of Entity | Registered Capital (RMB yuan) | Percentage of Equity Held by the Company | Principal Activities | | :--- | :--- | :--- | :--- | :--- | :--- | | Hainan Luhang Jianche Technology Co., Ltd. | Mainland China | Limited Liability Company | 100,000,000,000 | 100% | Internet and related services | | Hainan Jialan Information Technology Co., Ltd. | Mainland China | Limited Liability Company | 5,000,000 | 55% | Related services | | Shenzhen Taiyuan Biotechnology Co., Ltd. | Mainland China | Limited Liability Company | 90,000,000 | 100% | Related services | | Shenzhen Herun Biotechnology Co., Ltd. | Mainland China | Limited Liability Company | 10,000,000 | 51% | Internet and related services | 2. Interim Condensed Consolidated Financial Information for the Six Months Ended June 30, 2024 Prepared in Accordance with IAS 34 ‘Interim Financial Reporting’ The Group's interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and has adopted several revised IFRSs for the first time, none of which had a significant impact on financial position or performance Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2023 - The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting"[9] 3. Changes in Accounting Policies and Disclosures Several revised IFRSs, including amendments to sale and leaseback, liability classification, and supplier finance arrangements, were adopted for the first time during this period, but these amendments had no significant impact on the Group's financial position or performance - The first-time adoption of amendments to IAS 16 (Revised) Leases for sale and leaseback had no significant impact on the financial position or performance[10] - Amendments to IAS 1 (Revised) clarified requirements for classifying liabilities as current or non-current, with no significant impact on the Group's financial position or performance[10] - Amendments to IAS 7 and IFRS 7 (Revised) clarified supplier finance arrangements, with no significant impact on the interim condensed consolidated financial information[10] 4. Significant Accounting Judgments and Estimates The nature and assumptions related to accounting estimates used in preparing the Group's interim condensed consolidated financial information are consistent with those in the consolidated financial statements for the year ended December 31, 2023 - The nature and assumptions of accounting estimates are consistent with the 2023 annual consolidated financial statements[11] Notes to the Statement of Profit or Loss This section details the composition of net interest income, pre-tax loss, calculation of income tax benefit, dividend policy, and loss per share, providing a basis for understanding the Group's profitability and tax position 5. Net Interest Income For the six months ended June 30, 2024, the Group's net interest income was RMB 25,993,431, a slight decrease from the prior period, primarily derived from loans receivable Composition of Net Interest Income | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Interest Income from Loans Receivable | 26,039,860 | 26,134,211 | | Interest Income from Bank Cash | 101 | 2,069 | | Interest Expense on Lease Liabilities | (46,530) | (37,948) | | Net Interest Income | 25,993,431 | 26,098,332 | | Interest Income from Impaired Loans | 440,939 | 435,527 | 6. Loss Before Tax The Group's loss before tax is primarily influenced by impairment losses on loans and accounts receivable, administrative expenses, and goodwill impairment losses (in the prior period) Major Components of Loss Before Tax | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Impairment Losses on Loans and Accounts Receivable and Other Assets | 33,900,099 | 33,896,751 | | Impairment Loss on Goodwill | — | 2,059,114 | | Staff Costs (Salaries, Bonuses and Allowances) | 1,273,086 | 1,529,910 | | Service Fees | 853,945 | 488,739 | | Depreciation of Property, Plant and Equipment | 225,061 | 509,158 | | Depreciation of Right-of-Use Assets | 132,907 | 255,776 | 7. Income Tax Benefit For the six months ended June 30, 2024, the Group recorded an income tax benefit of RMB 2,955,666, a decrease from the prior period, mainly due to changes in deferred income tax Composition of Income Tax Benefit | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Current Income Tax | 4,877,217 | 861,511 | | Deferred Income Tax | (7,832,883) | (4,274,451) | | Total | (2,955,666) | (3,412,940) | 8. Dividends No dividends were paid or proposed for the six-month periods ended June 30, 2024, and 2023 - No dividends were paid or proposed for H1 2024 and H1 2023[15] 9. Loss Per Share Attributable to Ordinary Equity Holders of the Parent For the six months ended June 30, 2024, both basic and diluted loss per share attributable to ordinary equity holders of the parent were RMB 0.02, consistent with the prior period Loss Per Share Calculation | Indicator | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Parent | (9,212,032) | (12,441,421) | | Weighted Average Number of Ordinary Shares Issued | 600,000,000 | 600,000,000 | | Basic and Diluted Loss Per Share | (0.02) | (0.02) | - There were no dilutive potential ordinary shares during the reporting period, so diluted loss per share is the same as basic loss per share[17] Notes to the Statement of Financial Position This section details the major items in the Group's balance sheet, including the credit quality of loans and accounts receivable, property, plant and equipment, right-of-use assets, deferred tax, other assets, guarantee liabilities, lease liabilities, other liabilities, and share capital 10. Loans and Accounts Receivable As of June 30, 2024, total loans receivable were RMB 934,456,174, with an impairment loss allowance of RMB 72,968,605, resulting in a net amount of RMB 861,487,569, with guaranteed loans constituting the vast majority Overview of Loans and Accounts Receivable | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Guaranteed Loans | 934,239,316 | 923,723,845 | | Mortgage Loans | 67,013 | 67,013 | | Credit Loans | 149,845 | 174,090 | | Total Loans Receivable | 934,456,174 | 923,964,948 | | Less: Allowance for Impairment Losses | 72,968,605 | 51,218,753 | | Net Loans Receivable | 861,487,569 | 872,746,195 | Loan Credit Quality and Maximum Credit Risk Exposure As of June 30, 2024, "normal" loans accounted for 94.8% of the Group's loan portfolio, but "loss" category loans significantly increased to RMB 23,616,858 Loan Credit Quality Classification | Internal Rating | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Normal | 885,516,206 | 873,476,485 | | Watch | 5,423,110 | 19,437,360 | | Substandard | 4,800,000 | 11,110,000 | | Doubtful | 15,100,000 | 16,716,275 | | Loss | 23,616,858 | 3,224,828 | | Total | 934,456,174 | 923,964,948 | Analysis of Changes in Loan Balances As of June 30, 2024, loan balances increased from approximately RMB 924.0 million as of December 31, 2023, to approximately RMB 934.5 million, mainly due to new loans and some loans being reclassified to Stage 3 - In H1 2024, new loans amounted to RMB 655,185,849, and recovered loans were RMB 633,194,623[20] - Loans classified to Stage 3 increased from RMB 31,051,103 as of December 31, 2023, to RMB 43,516,858 as of June 30, 2024[20] Analysis of Changes in Expected Credit Losses (ECL) on Loans As of June 30, 2024, total ECL allowance increased from approximately RMB 51.2 million as of December 31, 2023, to approximately RMB 73.0 million, primarily due to an increase in net impairment provisions Movements in Loan Expected Credit Loss Allowance | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | ECL at Beginning of Period | 51,218,753 | 47,354,190 | | Net Impairment Provisions | 33,249,852 | 48,804,563 | | Write-offs | (11,500,000) | (44,940,000) | | Total ECL Allowance at End of Period | 72,968,605 | 51,218,753 | 11. Property, Plant and Equipment As of June 30, 2024, the net book value of property, plant and equipment was RMB 401,370, a decrease from December 31, 2023, primarily due to depreciation Net Book Value of Property, Plant and Equipment | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Net Book Value | 401,370 | 626,431 | 12. Right-of-Use Assets As of June 30, 2024, the net book value of right-of-use assets was RMB 667,455, a decrease from December 31, 2023, primarily due to current period depreciation and reduction Net Book Value of Right-of-Use Assets | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Net Book Value | 667,455 | 800,362 | 13. Deferred Taxation As of June 30, 2024, the Group's net deferred income tax assets were RMB 19,336,501, a significant increase from December 31, 2023, mainly from deductible temporary differences related to impairment provisions Net Deferred Income Tax Assets | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Net Deferred Income Tax Assets | 19,336,501 | 11,503,618 | (a) Analysis by Nature Deferred income tax assets primarily consist of deductible temporary differences from impairment provisions and guarantee liabilities, with a substantial increase in deferred tax assets related to impairment provisions Deferred Tax Assets Analysis by Nature | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Impairment Provisions (Deductible Temporary Differences) | 75,083,589 | 42,054,437 | | Impairment Provisions (Deferred Tax Assets) | 18,770,897 | 10,513,609 | | Guarantee Liabilities (Deductible Temporary Differences) | 2,468,461 | 2,263,566 | | Guarantee Liabilities (Deferred Tax Assets) | 617,115 | 565,892 | (b) Movements in Deferred Tax Assets and Liabilities Deferred tax assets increased by approximately RMB 7.8 million net recognized in profit or loss during H1 2024, while deferred tax liabilities slightly decreased Movements in Deferred Tax Assets | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Deferred Tax Assets at Beginning of Period | 11,755,528 | 9,610,760 | | Recognized in Profit or Loss | 7,802,541 | 2,144,768 | | Deferred Tax Assets at End of Period | 19,558,069 | 11,755,528 | Movements in Deferred Tax Liabilities | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Deferred Tax Liabilities at Beginning of Period | 251,910 | 138,844 | | Recognized in Profit or Loss | (30,342) | 113,066 | | Deferred Tax Liabilities at End of Period | 221,568 | 251,910 | 14. Other Assets As of June 30, 2024, total other assets were RMB 337,171, a decrease from December 31, 2023, primarily due to an increase in the allowance for other receivables Overview of Other Assets | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Prepayments | 39,596 | 58,324 | | Other Receivables | 564,578 | 565,320 | | Less: Allowance for Other Receivables | 267,003 | 57,695 | | Total | 337,171 | 565,949 | Movements in Allowance for Doubtful Debts As of June 30, 2024, the allowance for doubtful debts on other receivables increased from RMB 57,695 at the beginning of the period to RMB 267,003, mainly due to increased expenses during the period Movements in Allowance for Doubtful Debts | Item | H1 2024 (RMB yuan) | FY 2023 (RMB yuan) | | :--- | :--- | :--- | | At Beginning of Period/Year | 57,695 | 59,105 | | Expense During Period/Year | 209,308 | 35,825 | | Written Off as Uncollectible | — | (37,235) | | At End of Period/Year | 267,003 | 57,695 | Other Receivables Ageing Analysis and Expected Credit Losses As of June 30, 2024, other receivables aged over 365 days totaled RMB 564,578, with an expected credit loss rate of 47.29%, significantly higher than 10.35% as of December 31, 2023 Other Receivables Ageing Analysis and Expected Credit Losses | Ageing Analysis Method | June 30, 2024 Total Carrying Amount (RMB yuan) | June 30, 2024 Expected Credit Loss (RMB yuan) | June 30, 2024 Expected Credit Loss Rate | December 31, 2023 Total Carrying Amount (RMB yuan) | December 31, 2023 Expected Credit Loss (RMB yuan) | December 31, 2023 Expected Credit Loss Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Over 365 days | 564,578 | 267,003 | 47.29% | 557,695 | 57,695 | 10.35% | | Total | 564,578 | 267,003 | 47.29% | 565,320 | 57,695 | 10.21% | 15. Guarantee Liabilities As of June 30, 2024, total guarantee liabilities were RMB 2,468,461, an increase from December 31, 2023, primarily due to new guarantees Movements in Guarantee Liabilities Expected Credit Loss | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | ECL at Beginning of Period | 2,263,566 | 106,934 | | New Guarantees | 2,048,461 | 2,156,632 | | Derecognition | (1,843,566) | — | | Reclassified to Stage 2 | — | — | | Total ECL Allowance at End of Period | 2,468,461 | 2,263,566 | 16. Lease Liabilities As of June 30, 2024, the carrying value of lease liabilities was RMB 846,892, a decrease from December 31, 2023, primarily due to payments made during the period Movements in Lease Liabilities | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Carrying Value at January 1 | 1,535,362 | 714,524 | | New Leases | — | 800,362 | | Interest Accrued During Period | 46,530 | 20,476 | | Payments | (735,000) | — | | Carrying Value at End of Period | 846,892 | 1,535,362 | 17. Other Liabilities As of June 30, 2024, total other liabilities were RMB 11,465,078, an increase from December 31, 2023, primarily comprising amounts payable to employees, accrued expenses, and other payables Composition of Other Liabilities | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Amounts Payable to Employees | 3,883,529 | 3,730,930 | | Accrued Expenses | 2,245,050 | 1,236,750 | | Wages Payable | 467,060 | 488,841 | | Other Taxes Payable | 707,759 | 610,970 | | Other Payables | 4,161,680 | 4,162,416 | | Total | 11,465,078 | 10,229,907 | 18. Share Capital As of June 30, 2024, and December 31, 2023, the Group's paid-up capital remained unchanged at RMB 600,000,000 Share Capital | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Paid-up Capital | 600,000,000 | 600,000,000 | Notes to the Statement of Cash Flows This section provides detailed information on movements in liabilities arising from financing activities and total cash outflow for leases, indicating that lease liability repayments are the primary cash outflow from financing activities 19. Notes to the Consolidated Cash Flow Statement This section provides detailed information on movements in liabilities arising from financing activities and total cash outflow for leases, indicating that lease liability repayments are the primary cash outflow from financing activities (a) Movements in Liabilities Arising from Financing Activities As of June 30, 2024, lease liabilities decreased from approximately RMB 1.54 million as of December 31, 2023, to approximately RMB 0.85 million, primarily due to repayments Movements in Lease Liabilities (Financing Activities) | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Lease Liabilities at Beginning of Period | 1,535,362 | 714,524 | | New Leases | — | 800,362 | | Interest Expense | 46,530 | 20,476 | | Repayment of Lease Liabilities | (735,000) | — | | Lease Liabilities at End of Period | 846,892 | 1,535,362 | (b) Total Cash Outflow for Leases For the six months ended June 30, 2024, total cash outflow for leases was RMB 735,000, primarily reflected in financing activities Total Cash Outflow for Leases | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | In Financing Activities | (735,000) | — | | Total | (735,000) | — | 20. Related Party Transactions The Group engages in transactions with related parties, including leases, key management personnel compensation, and outstanding balances, with the office premises lease contract renewed until December 31, 2026 (a) Leases The Group renewed its office premises lease contract with an entity over which it has significant influence, for a lease term from January 1, 2024, to December 31, 2026 Related Party Lease Expenses | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 132,907 | 255,776 | | Interest Expense on Lease Liabilities | 46,530 | 37,948 | - The office premises lease contract was renewed with a related party for a term from January 1, 2024, to December 31, 2026[37] (b) Key Management Personnel Compensation For the six months ended June 30, 2024, total key management personnel compensation was RMB 682,250, a slight increase from the prior period Key Management Personnel Compensation | Item | H1 2024 (RMB yuan) | | :--- | :--- | | Key Management Personnel Compensation | 682,250 | (c) Outstanding Related Party Balances As of June 30, 2024, amounts payable to related parties primarily included amounts payable to key management personnel Zhang Zhuo and lease liabilities payable to Liantai Plaza Outstanding Related Party Balances | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Amounts Payable to Key Management Personnel Zhang Zhuo | 3,780,930 | 3,730,930 | | Lease Liabilities Payable to Liantai Plaza | 846,892 | 1,535,362 | 21. Segment Information Almost all of the Group's revenue is derived from providing loans to small and medium-sized enterprises in Yangzhou, Jiangsu Province, China, with no other significant segments besides the loan business - The Group's principal revenue is derived from providing loans to small and medium-sized enterprises in Yangzhou, Jiangsu Province, China[40] - There are no other significant segments apart from the loan business[40] 22. Contingent Liabilities As of June 30, 2024, the Group's contingent liabilities from financial guarantee contracts were RMB 53,000,000, a decrease from December 31, 2023 Contingent Liabilities | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Financial Guarantee Contracts | 53,000,000 | 63,000,000 | 23. Fair Value of Financial Instruments The carrying amounts of the Group's financial assets and liabilities measured at cost or amortized cost approximate their fair values due to their short remaining maturities or regular re-pricing to market rates - The carrying amounts of financial assets (e.g., bank cash, loans receivable) and financial liabilities (e.g., lease liabilities, other payables) approximate their fair values[42] - Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date[42] 24. Events After the Reporting Period As of the end of the reporting period, the Group had no other significant events after the reporting period - There were no other significant events after the reporting period[43] 25. Approval of Financial Information The Company's Board of Directors approved and authorized the publication of these interim condensed consolidated financial information on August 23, 2024 - The Board of Directors approved and authorized the publication of the interim condensed consolidated financial information on August 23, 2024[44] Management Discussion and Analysis This section provides a detailed analysis of the Group's business and financial performance for the six months ended June 30, 2024, including changes in loan portfolio, asset quality, income, and expenses, explaining the reasons for key financial indicator variations Business Review In H1 2024, the Group pursued business opportunities, experiencing a slight decrease in interest income but a significant reduction in loss after tax, with loan scale slightly growing while total assets and net assets slightly decreased, and the company adjusted its customer base to increase credit to lower-risk related enterprise supply chain customers - Interest income was approximately RMB 26.0 million, a year-on-year decrease of 0.4%[45] - Loss after tax was approximately RMB 9.4 million, a reduction from RMB 12.8 million in the prior period, primarily due to decreased subsidiary losses and goodwill/guarantee impairment losses[45] - The balance of outstanding loans (before impairment allowance) was approximately RMB 934.5 million, an increase of approximately 1.1% compared to December 31, 2023[45] - The company adjusted its customer base structure, reducing credit to real estate-related industry customers and increasing credit to lower-risk related enterprise supply chain customers[46] Number of Customers The Group's customer base primarily consists of small and medium-sized enterprises, micro-enterprises, and individual businesses in Yangzhou, most of which fall under the "agriculture, rural areas, and farmers" category, with 135 customers receiving loans in H1 2024, slightly fewer than 137 in the prior period - The customer base primarily consists of small and medium-sized enterprises, micro-enterprises, and individual businesses in Yangzhou, most of which fall under the "agriculture, rural areas, and farmers" category[46] Number of Loan Customers | Period | Number of Loan Customers | | :--- | :--- | | H1 2024 | 135 | | H1 2023 | 137 | Loan Portfolio by Size As of June 30, 2024, guaranteed loans exceeding RMB 4 million but less than or equal to RMB 5 million constituted the largest portion of the Group's loan portfolio at 56.3%, indicating increased loan concentration Outstanding Loans by Size | Loan Size | June 30, 2024 (RMB thousand) | June 30, 2024 (%) | December 31, 2023 (RMB thousand) | December 31, 2023 (%) | | :--- | :--- | :--- | :--- | :--- | | Less than or equal to RMB 0.5 million | 3,724 | 0.4 | 351 | 0.0 | | Over RMB 0.5 million but less than or equal to RMB 1 million | 9,399 | 1.0 | 1,803 | 0.2 | | Over RMB 1 million but less than or equal to RMB 2 million | 12,815 | 1.4 | 48,212 | 5.2 | | Over RMB 2 million but less than or equal to RMB 3 million | 56,948 | 6.1 | 214,586 | 23.2 | | Over RMB 3 million but less than or equal to RMB 4 million | 125,251 | 13.4 | 105,604 | 11.4 | | Over RMB 4 million but less than or equal to RMB 5 million | 525,994 | 56.3 | 379,172 | 41.1 | | Over RMB 5 million but less than or equal to RMB 8 million | — | — | 125,147 | 13.6 | | Over RMB 8 million but less than or equal to RMB 10 million | 200,325 | 21.4 | 49,090 | 5.3 | | Total | 934,456 | 100.0 | 923,965 | 100.0 | - In accordance with "Sujinjianfa [2022] No. 40" document, the company began to grant single-household loans exceeding RMB 3 million in 2023[48] Loan Portfolio by Guarantee Method As of June 30, 2024, guaranteed loans accounted for 100.0% of total outstanding loans, with mortgage and credit loans representing a negligible proportion Outstanding Loans by Guarantee Method | Guarantee Method | June 30, 2024 (RMB thousand) | June 30, 2024 (%) | December 31, 2023 (RMB thousand) | December 31, 2023 (%) | | :--- | :--- | :--- | :--- | :--- | | Guaranteed Loans | 934,239 | 100.0 | 923,724 | 100.0 | | Mortgage Loans | 67 | 0.0 | 67 | 0.0 | | Credit Loans | 150 | 0.0 | 174 | 0.0 | | Total | 934,456 | 100.0 | 923,965 | 100.0 | Number of Loans Granted by Guarantee Method | Guarantee Method | Number of Loans Granted H1 2024 | Number of Loans Granted H1 2023 | | :--- | :--- | :--- | | Guaranteed Loans | 146 | 137 | | Total | 146 | 137 | Asset Quality As of June 30, 2024, the Group's impaired loan ratio increased to 4.7%, with a provision coverage ratio of 167.7% and an overdue loan ratio of 5.2%, with the increase in non-performing loans primarily affected by the sluggish real estate market - The Group has established a standardized and centralized risk management system and implements a "separation of loan approval and disbursement" policy[51] - Due to the continued sluggish real estate and related markets in 2024, some borrowers experienced operational difficulties and broken capital chains, leading to an increase in non-performing loans[51] Provisioning Policy and Asset Quality As of June 30, 2024, "normal" loans accounted for 94.8% of the Group's loan portfolio, while "loss" category loans increased to 2.5%, indicating pressure on asset quality Outstanding Loans by "Five-Category Classification Principle" | Category | June 30, 2024 (RMB thousand) | June 30, 2024 (%) | December 31, 2023 (RMB thousand) | December 31, 2023 (%) | | :--- | :--- | :--- | :--- | :--- | | Normal | 885,516 | 94.8 | 873,477 | 94.5 | | Watch | 5,423 | 0.6 | 19,437 | 2.1 | | Substandard | 4,800 | 0.5 | 11,110 | 1.2 | | Doubtful | 15,100 | 1.6 | 16,716 | 1.8 | | Loss | 23,617 | 2.5 | 3,225 | 0.4 | | Total | 934,456 | 100.0 | 923,965 | 100.0 | Loan Quality Analysis As of June 30, 2024, the impaired loan ratio was 4.7%, the provision coverage ratio was 167.7%, and the overdue loan ratio was 5.2%, with both impaired loan balances and impairment loss provisions increasing Loan Quality Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Impaired Loan Ratio | 4.7% | 3.4% | | Impaired Loan Balance (RMB thousand) | 43,517 | 31,051 | | Provision Coverage Ratio | 167.7% | 165.0% | | Impairment Loss Provision (RMB thousand) | 72,969 | 51,219 | | Impairment Loss Provision Ratio | 7.8% | 5.5% | | Overdue Loan Ratio | 5.2% | 5.5% | | Overdue Loan Balance (RMB thousand) | 48,940 | 50,488 | Overview of Recognized Loan Impairment Losses For the six months ended June 30, 2024, the company recorded loan impairment losses of RMB 33.69 million, primarily attributable to new impaired loans and borrowers' operational difficulties caused by the sluggish real estate market - In H1 2024, loan impairment losses were RMB 33.69 million[57] Details of New Impaired Loans (H1 2024) | Overdue Days | Number of Borrowers | Number of Loans | Total Loan Amount (RMB million) | Net Impairment Provision (RMB million) | Interest Rate Range | Guarantee Type | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Overdue > 3 months and < 6 months | 2 | 2 | 4.80 | 1.84 | 4.35%~8.4% | Guaranteed | | Overdue > 6 months and < 12 months | 8 | 8 | 19.30 | 14.75 | 6.6%~8.4% | Guaranteed | | Total | 10 | 10 | 24.10 | 16.59 | | | - The increase in loan impairment losses was primarily due to the sluggish real estate and related markets in 2024, leading to operational difficulties and broken capital chains for some borrowers[59] Measures Taken to Ensure Recoverability of Overdue Loans The company implements phased collection measures for overdue loans, including client manager reminders, on-site visits, negotiating repayment plans, and initiating recourse against guarantors or foreclosure procedures when necessary - Overdue loans of more than 1 day constitute overdue, and client managers will visit to remind and assess risks[59] - For loans overdue for more than 20 days, client managers will conduct another on-site visit with legal department representatives[59] - For loans overdue for more than 45 days, a repayment plan may be negotiated, and if unsuccessful, recourse against guarantors or foreclosure procedures on collateral will be initiated[60] Financial Review This section analyzes the Group's changes in interest income, interest expense, impairment losses, administrative expenses, other income, income tax benefit, loss after tax, and total comprehensive loss for H1 2024, along with their primary causes Interest Income For the six months ended June 30, 2024, interest income decreased by 0.4% to approximately RMB 26.0 million, primarily due to a decrease in the effective annual interest rate, despite a slight increase in the average daily balance of loans receivable - Interest income decreased by 0.4% year-on-year to approximately RMB 26.0 million[54] - The average daily balance of loans receivable increased from approximately RMB 916.0 million to approximately RMB 925.3 million[54] - The effective annual interest rate slightly decreased from 5.7% to 5.6% to maintain market share[54] Interest Expense For the six months ended June 30, 2024, interest expense was RMB 46,530, an increase from the prior period, entirely attributable to lease liabilities related to office premises Interest Expense | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Interest Expense | 46,530 | 37,948 | - Interest expense was entirely from lease liabilities related to office premises[55] Impairment Losses on Loans and Accounts Receivable and Other Assets For the six months ended June 30, 2024, impairment loss allowance was approximately RMB 33.9 million, consistent with the prior period, primarily due to increased non-performing loans from the sluggish real estate market Impairment Loss Allowance | Item | H1 2024 (RMB million) | H1 2023 (RMB million) | | :--- | :--- | :--- | | Impairment Loss Allowance | 33.9 | 33.9 | - The slight increase in impairment loss allowance was primarily due to the sluggish real estate and related markets in 2024, leading to operational difficulties and broken capital chains for some borrowers, resulting in increased non-performing loans and loan impairment loss allowance[56] Administrative Expenses For the six months ended June 30, 2024, administrative expenses decreased by 19.3% to approximately RMB 4.2 million, mainly due to reduced staff costs and promotion expenses at subsidiaries Administrative Expenses | Item | H1 2024 (RMB million) | H1 2023 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Administrative Expenses | 4.2 | 5.2 | -19.3% | - The decrease was primarily due to reduced staff costs and promotion expenses incurred for business expansion at subsidiaries[61] Other Income, Net For the six months ended June 30, 2024, net other income significantly decreased to RMB 22,621, primarily due to reduced commission income from a decline in subsidiary business scale Net Other Income | Item | H1 2024 (RMB yuan) | H1 2023 (RMB yuan) | | :--- | :--- | :--- | | Net Other Income | 22,621 | 731,318 | - The decrease was primarily due to the decline in the business scale of subsidiaries, leading to reduced commission income[62] Income Tax Benefit For the six months ended June 30, 2024, income tax benefit decreased by 13.4% to approximately RMB 3.0 million, primarily due to a reduction in the company's pre-tax loss Income Tax Benefit | Item | H1 2024 (RMB million) | H1 2023 (RMB million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Income Tax Benefit | 3.0 | 3.4 | -13.4% | - The decrease was primarily due to the reduction in the company's pre-tax loss[63] Loss After Tax For the six months ended June 30, 2024, loss after tax was approximately RMB 9.4 million, narrowing from approximately RMB 12.8 million in the prior period, primarily due to decreased subsidiary losses and reduced goodwill and guarantee impairment losses Loss After Tax | Item | H1 2024 (RMB million) | H1 2023 (RMB million) | | :--- | :--- | :--- | | Loss After Tax | 9.4 | 12.8 | - The reduction in loss was primarily due to decreased subsidiary losses and reduced goodwill and guarantee impairment losses in the current period[64] Total Comprehensive Loss For the six months ended June 30, 2024, total comprehensive loss was approximately RMB 9.8 million, narrowing from approximately RMB 12.8 million in the prior period, consistent with the reasons for the reduced loss after tax Total Comprehensive Loss | Item | H1 2024 (RMB million) | H1 2023 (RMB million) | | :--- | :--- | :--- | | Total Comprehensive Loss | 9.8 | 12.8 | - The reduction in loss was primarily due to decreased subsidiary losses and reduced goodwill and guarantee impairment losses in the current period[65] Other Matters This section covers non-financial material information for the Group during the reporting period, including significant investments, financial management strategies, corporate governance, shareholder equity, employee policies, and future development strategies, providing a comprehensive understanding of the company's operations Significant Investments and Acquisitions For the six months ended June 30, 2024, and up to the date of this announcement, the Group had no significant investments, major acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any specific future plans for major investments or capital assets - For the six months ended June 30, 2024, and up to the date of this announcement, the Group had no significant investments[66] - For the six months ended June 30, 2024, and up to the date of this announcement, the Group had no major acquisitions or disposals of subsidiaries, associates, and joint ventures[67] - For the six months ended June 30, 2024, and up to the date of this announcement, the Group had no specific future plans for major investments or capital assets[68] Liquidity, Financial Resources and Capital Structure The Group adopts a prudent financial management strategy, striving to minimize credit and liquidity risks; as of June 30, 2024, cash and cash equivalents were approximately RMB 0.03 million, the debt-to-equity ratio was zero, and no financial instruments were used for hedging purposes - The Group primarily operates in China, with limited foreign exchange rate risk[69] - As of June 30, 2024, the Group's cash and cash equivalents were approximately RMB 0.03 million[70] - As of June 30, 2024, the Group's debt-to-equity ratio was zero[70] - The Group adopts a prudent financial management strategy, continuously assessing customer credit and financial conditions, and closely monitoring liquidity status[71] Debts and Pledge of Assets As of June 30, 2024, the Group's lease liabilities balance was approximately RMB 0.85 million, with no other debts or pledged assets Overview of Debts and Pledge of Assets | Item | June 30, 2024 (RMB million) | December 31, 2023 (RMB million) | | :--- | :--- | :--- | | Lease Liabilities Balance | 0.85 | 1.5 | - As of June 30, 2024, for the six months ended, the Group had no other debts or pledged assets apart from lease liabilities[72] Contingent Liabilities As of June 30, 2024, the Group's contingent liabilities from financial guarantee contracts were RMB 53,000,000, a decrease from December 31, 2023 Contingent Liabilities (Financial Guarantee Contracts) | Item | June 30, 2024 (RMB yuan) | December 31, 2023 (RMB yuan) | | :--- | :--- | :--- | | Financial Guarantee Contracts | 53,000,000 | 63,000,000 | Off-Balance Sheet Arrangements For the six months ended June 30, 2024, and up to the date of this announcement, the Group had no off-balance sheet arrangements - The Group had no off-balance sheet arrangements[74] Interim Dividends The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board of Directors does not recommend the payment of an interim dividend for H1 2024[74] Employees and Remuneration Policy This section details the Group's employee and remuneration policies, corporate development strategy, directors' and major shareholders' interests, controlling shareholder's share pledge, public float, changes in directors and supervisors, interests in competing businesses, audit committee, and corporate governance - The company established an Audit Committee on January 31, 2015, comprising three independent non-executive directors[90] - For the six months ended June 30, 2024, and up to the date of this announcement, the company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[91] Material Litigation and Arbitration As of June 30, 2024, the Group was not involved in any material litigation or arbitration - As of June 30, 2024, the Group was not involved in any material litigation or arbitration[74] Employees and Remuneration Policy As of June 30, 2024, the Group had 16 full-time employees, with total remuneration of approximately RMB 1.6 million; the company provides basic salaries, bonuses, and benefits, and emphasizes employee training Employee Information and Remuneration | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of Full-time Employees | 16 | 18 | | Total Employee Remuneration (H1 2024) | Approximately RMB 1.6 million | Approximately RMB 1.8 million (H1 2023) | - The company provides basic salaries, performance-based bonuses, various benefits and allowances, and offers training in professional skills, operational procedures, knowledge, corporate culture, and ethics[75] Share Scheme As of the date of this announcement, the company has not adopted any share scheme - As of the date of this announcement, the company has not adopted any share scheme[76] Business Development Strategy and Outlook The company aims to become a leading regional micro-finance company, focusing on the short-term business financing needs of small and medium-sized enterprises; it will continue to balance returns and risks, adjust its customer base, and benefit from China's ongoing support policies for "agriculture, rural areas, and farmers" - The goal is to become a leading regional micro-finance company, focusing on the short-term business financing needs of small and medium-sized enterprises[77] - The company will continue to maintain prudent business operations, timely adjust its customer base structure, reduce credit to real estate-related industry customers, and increase credit limits for lower-risk related enterprise supply chain customers[77] - Most customers engaged in the "agriculture, rural areas, and farmers" sector are expected to continue to benefit from support policies, resulting in lower loan repayment default risk[77] Directors, Supervisors and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation As of June 30, 2024, Mr. Bai Wanlin, Ms. Bai Li, and Mr. Zhang Zhuo held interests in the company's shares, with Mr. Bai Wanlin holding a significant number of domestic shares through his controlled corporation, Baitai Group Directors'/Supervisors' Interests in Company Shares | Director/Supervisor | Nature of Interest | Number of Shares Held (Domestic Shares) | Approximate Percentage of Equity in Relevant Share Class | Approximate Percentage of Total Issued Shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Bai Wanlin | Interest in Controlled Corporation | 180,200,000 | 40.04% | 30.03% | | Ms. Bai Li | Beneficial Owner | 10,000,000 | 2.22% | 1.67% | | Mr. Zhang Zhuo | Beneficial Owner | 30,000,000 | 6.67% | 5.00% | - Mr. Bai Wanlin controls over one-third of the voting rights in Jiangsu Baitai Group Co., Ltd. and is therefore deemed to have an interest in Baitai Group's interest in the company[79] Associated Corporations Mr. Bai Wanlin, Ms. Bai Li, and Mr. Bai Nianbin hold beneficial ownership interests in Baitai Group, which is an associated corporation of the company Directors'/Supervisors' Interests in Associated Corporations | Director/Supervisor | Associated Corporation | Nature of Interest | Approximate Percentage of Equity in Relevant Share Class of Associated Corporation | | :--- | :--- | :--- | :--- | | Mr. Bai Wanlin | Baitai Group | Beneficial Owner | 33.33% | | Mr. Bai Wanlin | Baitai Group | Spouse's Family Interest | 16.67% | | Ms. Bai Li | Baitai Group | Beneficial Owner | 25.00% | | Mr. Bai Nianbin | Baitai Group | Beneficial Owner | 25.00% | Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares As of June 30, 2024, Baitai Group, Ms. Wang Zhengru, Jiangsu Liantai Fashion Shopping Plaza Real Estate Co., Ltd., Beijing Zhongting Limin Hospital Management Co., Ltd., Shenzhen Gangfutong Financial Information Service Co., Ltd., Ms. Zheng Jingyue, and Mr. Lu Qi were the company's substantial shareholders Substantial Shareholders' Interests in Shares | Shareholder | Nature of Interest | Number of Shares Held | Approximate Percentage of Equity in Relevant Share Class | Approximate Percentage of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | | Baitai Group | Beneficial Owner | 180,200,000 Domestic Shares | 40.04% | 30.03% | | Ms. Wang Zhengru | Spouse's Family Interest | 180,200,000 Domestic Shares | 40.04% | 30.03% | | Jiangsu Liantai Fashion Shopping Plaza Real Estate Co., Ltd. | Beneficial Owner | 141,900,000 Domestic Shares | 31.53% | 23.65% | | Beijing Zhongting Limin Hospital Management Co., Ltd. | Interest in Controlled Corporation | 141,900,000 Domestic Shares | 31.53% | 23.65% | | Shenzhen Gangfutong Financial Information Service Co., Ltd. | Beneficial Owner | 48,000,000 Domestic Shares | 10.67% | 8.00% | | Ms. Zheng Jingyue | Interest in Controlled Corporation | 48,000,000 Domestic Shares | 10.67% | 8.00% | | Ms. Zheng Jingyue | Beneficial Owner | 364,000 H Shares | 0.24% | 0.06% | | Mr. Lu Qi | Beneficial Owner | 30,000,000 Domestic Shares | 6.67% | 5.00% | Pledge of Shares by Controlling Shareholder Controlling shareholder Baitai Group has pledged 45,000,000 domestic shares as collateral for a RMB 20,000,000 bank financing, representing approximately 25.0% of its total shareholding - Controlling shareholder Baitai Group has pledged 45,000,000 domestic shares as collateral for RMB 20,000,000 bank financing[85] - These pledged domestic shares represent approximately 25.0% of Baitai Group's total domestic shares, approximately 10.0% of total issued domestic shares, and approximately 7.5% of total issued shares[85] Public Float For the six months ended June 30, 2024, and up to the date of this announcement, at least 25% of the company's issued shares were held by public shareholders, complying with Listing Rules requirements - At least 25% of the company's issued shares are held by public shareholders, complying with Listing Rules requirements[86] Changes in Information of Directors and Supervisors The directors of the seventh session of the Board and supervisors of the seventh session of the Supervisory Committee were elected or re-elected on June 8, 2023, with terms until January 18, 2027, and no other information changes since the date of the 2023 annual report - The directors of the seventh session of the Board and supervisors of the seventh session of the Supervisory Committee were elected or re-elected on June 8, 2023, for a term of three years (from January 19, 2024, to January 18, 2027)[87] - There have been no changes in directors' and supervisors' information required to be disclosed under Listing Rule 13.51B(1) since the date of the 2023 annual report[87] Purchase, Sale or Redemption of Listed Securities For the six months ended June 30, 2024, the Group did not purchase, sell, or redeem any of the company's listed securities, and the company held no treasury shares - The Group did not purchase, sell, or redeem any of the company's listed securities[88] - As of June 30, 2024, the company held no treasury shares[88] Interests in Competing Businesses Controlling shareholder Baitai Group holds an 8% interest in Yangzhou Guangling Zhongcheng Rural Bank, which primarily engages in banking business; the directors believe the competition between Zhongcheng Bank's principal business and the company's principal business is limited and not intense - Controlling shareholder Baitai Group holds an 8% interest in Yangzhou Guangling Zhongcheng Rural Bank[89] - The directors believe that the competition between Zhongcheng Bank's principal business and the company's principal business is limited and not intense[89] Audit Committee The Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and overseeing financial reporting, risk management, and internal control systems, and has reviewed this interim results announcement and financial statements - The Audit Committee comprises three independent non-executive directors, with Mr. Xu Xuechuan serving as Chairman[90] - Its primary responsibilities include reviewing and overseeing the Group's financial reporting, risk management, and internal control systems, monitoring audit procedures, and providing advice and recommendations to the Board[90] - The Audit Committee has reviewed this interim results announcement and the Group's unaudited consolidated financial statements for the six months ended June 30, 2024[90] Corporate Governance For the six months ended June 30, 2024, and up to the date of this announcement, the company has complied with the requirements of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The company has complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules[91] [Code of Conduct for Securities Transactions by Directors and Supervisors](index=42&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3