Financial Performance - Total revenue decreased by 33.1% from RMB 19.35 billion for the six months ended June 30, 2023, to RMB 12.94 billion for the six months ended June 30, 2024[21]. - The net loss for the six months ended June 30, 2024, was RMB 1.56 billion, compared to a net profit of RMB 1.74 billion for the same period in 2023[17]. - The company reported a total comprehensive loss of RMB (1,634,621) thousand for the six months ended June 30, 2024, compared to a total comprehensive income of RMB 1,059,353 thousand in 2023[80]. - Basic earnings per share for the first half of 2024 were RMB (1.45), compared to RMB 1.43 in the same period of 2023, indicating a decline in profitability per share[80]. - The company reported a net loss attributable to owners of RMB (1,662,535) thousand in 2024, compared to a profit of RMB 1,637,325 thousand in 2023[126]. Revenue Sources - Technology platform revenue decreased by 49.9% from RMB 9,086 million for the six months ended June 30, 2023, to RMB 4,552 million for the six months ending June 30, 2024[22]. - The company reported a significant decrease in revenue from zero retail credit empowerment service fees, dropping from RMB 8,978,365 thousand in 2023 to RMB 4,506,407 thousand in 2024, a decline of about 49.9%[108]. - The revenue from technology platform services decreased from RMB 9,086,070 thousand in 2023 to RMB 4,551,892 thousand in 2024, reflecting a decline of about 49.9%[108]. Expenses and Cost Management - Total expenses decreased by 24.0% from RMB 16,920 million to RMB 12,857 million, attributed to cost control measures related to outstanding loan balances and new loan sales[23]. - Sales and marketing expenses decreased by 48.1% from RMB 5,570 million to RMB 2,890 million, due to reduced commissions from new loan sales and optimization of the sales team[24]. - General and administrative expenses decreased by 20.5% from RMB 1,249 million to RMB 993 million, mainly due to reduced taxes and cost control measures[24]. - Employee benefits expenses for the six months ended June 30, 2024, were RMB 4,423 million, down from RMB 6,190 million for the same period in 2023[40]. Assets and Liabilities - The total assets as of June 30, 2024, were RMB 216,930,102 thousand, a decrease from RMB 237,023,009 thousand as of December 31, 2023[82]. - The company's total liabilities decreased to RMB 134,253,699 thousand from RMB 143,339,227 thousand, showing a reduction of approximately 6%[82]. - Cash and cash equivalents decreased from RMB 46,928 million as of June 30, 2023, to RMB 37,114 million as of June 30, 2024[28]. - The company’s total customer deposits reached RMB 3,126,937 thousand as of June 30, 2024, compared to zero as of December 31, 2023[163]. Credit and Risk Management - The expected credit loss (ECL) provision was RMB 9,374,361 thousand, a decrease from RMB 9,651,158 thousand as of December 31, 2023, representing a reduction of 16%[101]. - The expected credit loss rate increased from 38.02% as of December 31, 2023, to 39.83% as of June 30, 2024[134]. - The total amount of expected credit losses and financing guarantee liabilities related to expected credit losses was RMB 10,729,651 thousand as of June 30, 2024, down from RMB 11,459,365 thousand as of December 31, 2023[101]. - The company’s total expected credit loss model parameters changed, resulting in a net effect of RMB 428,356 thousand on expected credit losses during the reporting period[159]. Shareholder Information - As of June 30, 2024, the total number of issued and outstanding shares is 1,147,095,737 shares[49]. - Major shareholder An Technology holds 285,000,000 shares, representing approximately 24.85% of the total equity[52]. - Major shareholder Ping An Overseas Holdings owns 189,905,000 shares, accounting for about 16.56% of the total equity[52]. - Ping An Insurance holds 474,905,000 shares, which is approximately 41.40% of the total equity[52]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with relevant regulations[69]. - The company has adhered to all applicable corporate governance code provisions during the reporting period, with one exception regarding the dual role of the Chairman and CEO[68]. - The independent auditor has reviewed the interim financial information and found no significant issues[76]. Strategic Initiatives - The company aims to leverage Ping An Group's brand reputation and technological resources to strengthen its market position[18]. - The company completed the acquisition of all issued share capital of PAO Bank Limited on April 2, 2024[33]. - The company has successfully transitioned to a 100% guarantee business model as of Q4 2023, eliminating the need for third-party credit enhancement[34]. Future Outlook - The company has no significant future investment or capital asset plans as of June 30, 2024[34]. - The company will continue to evaluate the separation of the roles of Chairman and CEO as necessary[68]. - The report includes forward-looking statements based on current expectations and involves inherent risks and uncertainties[71].
陆控(06623) - 2024 - 中期财报