Company Overview - Guangdong Join-Share Financing Guarantee Investment Co., Ltd. is a leading financing guarantee services provider in Guangdong province, focusing on credit-based financing solutions for SMEs since its establishment in 2003[4]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province[4]. - As of June 2014, Foshan Join-Share Micro Credit Co., Ltd. was consolidated into the Group, enhancing its micro-lending capabilities[5]. - The company has established strong cooperative relationships with various banks and non-bank financial institutions, which helps diversify customer referrals and reduce credit risks[6]. - The company has an "AA" corporate rating from CSCI Pengyuan Credit Rating Co. Ltd., indicating a stable outlook[6]. - The share capital comprises Domestic Shares and H Shares, with H Shares listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 23, 2015[7]. - The company aims to ensure management independence and has implemented prudent corporate governance since its establishment[6]. - The management team has substantial expertise in finance, banking, accounting, and legal industries, contributing to the company's strong market position[6]. - The company does not have a controlling shareholder, which supports its governance structure and operational independence[6]. Financial Performance - Total revenue for the year ended December 31, 2024, was approximately RMB 359.03 million, representing a decrease of approximately 7.60% compared to the previous year[27]. - Profit for the year was approximately RMB 42.82 million, with a net profit margin of 12.42%[27]. - Profit before taxation amounted to approximately RMB 66.85 million, reflecting a decrease of approximately 11.23% compared to last year[27]. - Profit attributable to equity shareholders of the Company was approximately RMB 42.18 million, representing an increase of approximately 9.84% compared to the previous year[27]. - The Board recommended a final dividend of RMB 0.019 per share for the year ended December 31, 2024[27]. - Operating expenses for the year were RMB 142.17 million, slightly decreased from RMB 143.38 million in the previous year[26]. - Total assets increased to RMB 3,884.59 million from RMB 3,788.24 million in the previous year[26]. - Total liabilities rose to RMB 1,523.50 million from RMB 1,432.49 million in the previous year[26]. - The return on net assets was 1.8%, unchanged from the previous year[26]. - The return on assets was 1.1%, consistent with the previous year[26]. Economic Context - In 2024, China's GDP reached RMB134.9084 trillion, marking a 5.0% year-on-year growth, maintaining its position as the world's second-largest economy[43]. - The added value of the primary industry was RMB9.1414 trillion, a 3.5% year-on-year increase; secondary industry was RMB49.2087 trillion, an increase of 5.3%; and tertiary industry was RMB76.5583 trillion, with a 5.0% growth[43]. - Quarterly GDP growth rates were 5.3% in Q1, 4.7% in Q2, 4.6% in Q3, and 5.4% in Q4, indicating a V-shaped recovery[43]. Business Strategy and Development - The Group's financing guarantee business license was renewed, and it has optimized its business structure and innovated its service model to enhance corporate governance[47]. - The Group aims to improve financing accessibility and reduce funding costs for SMEs, thereby supporting innovation and business expansion[48]. - The "town-street model" was recognized as a typical case of inclusive financial services in 2024 by the China Association for Small & Medium Commercial Enterprises[37]. - The Group has focused on green finance, elderly care finance, and value-added services as new business directions[38]. - A new five-year development plan is being formulated to innovate the business model and optimize management structure[39]. - The Group has established a systematic investment and financing service platform for SMEs, enhancing financing efficiency and reducing costs[44]. - The Group's subsidiaries received recognition in the "Spotlight Programme" for emerging and pioneering enterprises, enhancing the company's brand influence[40]. Guarantee and Loan Operations - As of December 31, 2024, the Group's total outstanding guarantee was approximately RMB 7,533.25 million, a decrease from RMB 9,792.61 million as of December 31, 2023, representing a reduction of approximately 23%[55][56]. - For the year ended December 31, 2024, the net guarantee fee income was approximately RMB 223.77 million, down from RMB 245.48 million in the previous year, indicating a decline of about 8.8%[55][56]. - The balance of entrusted loans as of December 31, 2024, was approximately RMB 385.46 million, slightly decreased from RMB 395.57 million as of December 31, 2023, reflecting a reduction of about 2.8%[61][58]. - The top five customers of entrusted loans represented approximately 47.32% of the total remaining balance as of December 31, 2024[61]. - The monthly fixed interest rate charged for entrusted loans ranged from 0.5% to 1.15%, consistent with the previous year[57][58]. - The Group aims to enhance financing accessibility for SMEs and reduce their financing costs, promoting investment and innovation within the sector[49]. - The Group has received approval for financing guarantee business operations, establishing a solid foundation for sustainable development[49]. - The Group is focused on adjusting its business structure and strengthening internal management to support long-term growth[49]. - The Group's vision is to become a systematic investment and financing service provider for small and micro enterprises[49]. Micro-lending Operations - The Group's micro-lending balance as of December 31, 2024, was approximately RMB727.41 million, an increase from RMB580.31 million as of December 31, 2023, representing a growth of approximately 25.38%[63]. - The monthly fixed interest rate for micro-lending remained stable, ranging from 0.55% to 2.0% for both the years ended December 31, 2024, and December 31, 2023[63]. - The Group's net interest income for the year ended December 31, 2024, was approximately RMB94.85 million, reflecting an increase of approximately 8.52% compared to RMB87.40 million for the year ended December 31, 2023[67]. - The top five customers accounted for approximately 10.31% of the total micro-lending balance as of December 31, 2024[65]. - The Group's micro-lending operations are conducted through its subsidiary, Foshan Micro Credit, which is approved by the Guangdong Financial Supervisory Authority[63]. - The maximum amount of micro-lending that the Group can provide is capped at RMB15.00 million due to regulatory limits[63]. Risk Management - The Group employs a comprehensive internal control policy to manage risks associated with its guarantee business, including post-transaction inspections and regular monitoring of customer profiles[68]. - Special post-transaction supervision is conducted monthly for projects with operational risks or high cumulative guarantee liabilities[71]. - The interest rates for individual loans within the micro-lending portfolio vary based on borrower creditworthiness and other factors[66]. - The Group's micro-lending business primarily targets SMEs, individual business proprietors, and individuals in the Foshan area[63]. - The company conducts risk screening and adopts stricter supervision for high-risk industries and projects affected by macroeconomic conditions[73]. - Risk profiles are classified into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," based on various financial and repayment criteria[75]. - The company initiates collection processes for projects with significant hidden risks or risk exposure, including paying outstanding loan amounts to banks in case of customer defaults[76]. - For entrusted loans, the project manager prepares investigation reports and collects collateral-related materials, with loan approvals capped at 6% of the group's net assets[78]. - The company adjusts project supervision levels and review frequencies based on the classified risk profiles, enhancing focus on "special-attention" projects[75]. - Collateral management includes both tangible and intangible assets, with regular inspections and appraisals conducted for registered properties[74]. - The company collaborates with customers to develop alternative repayment plans when customers indicate an intention to repay[76]. - Legal proceedings may be initiated against customers in disputes over collateral rights, with the company seeking court orders to enforce guarantee agreements[76]. - The risk management department works closely with the business department to develop project due date guidance based on customer performance[73]. - The company employs differentiated risk management strategies to enhance supervision on higher-risk projects, particularly those classified as "substandard," "suspicious," or "loss"[75]. - The company initiates post-loan management procedures to identify potential repayment difficulties for entrusted loans upon expiry[79]. Management and Governance - The total number of staff as of December 31, 2024, was 291, with 87% holding a bachelor's degree or above[173]. - Mr. Wu has approximately 22 years of experience in the finance industry, having held various managerial positions in multiple companies[180]. - From May 2001 to May 2003, Mr. Wu served as the general manager at Guangdong Yinda Financing Guaranty Investment Group Co., Ltd., focusing on business operations[181]. - Mr. Huang has over 10 years of experience in financial management, with roles in various sections of the Foshan Finance Bureau[186]. - Mr. Huang was appointed as a non-executive Director on June 18, 2024[185]. - Mr. Zhao Wei was appointed as a non-executive Director on January 29, 2021[190]. - Mr. Huang obtained his bachelor's degree in economics, majoring in Finance (International Finance), in June 2003[187]. - Mr. Wu received his bachelor's degree in economics from Anhui Finance and Trading College in July 1983, majoring in business accounting[182]. - Mr. Wu has been recognized with multiple awards, including the "Special Contribution Award for the Construction of China's Social Credit System" in 2022[184]. - Mr. Huang served as the head of the finance section of Foshan Finance Bureau from December 2020 to February 2023[186]. - Mr. Wu was elected as a representative of the 13th National People's Congress in 2018[184]. - Mr. Zhao has over 29 years of experience in the finance industry and currently serves as the chief officer of the strategic investment department at Foshan Financial[191]. - Mr. Pan has over 25 years of experience in business administration and was appointed as a non-executive Director on June 18, 2024[196]. - Ms. Feng was appointed as a non-executive Director on June 18, 2024, after previously serving as a Supervisor from June 6, 2018, to June 5, 2021[200]. - Mr. Zhao holds the PRC Certified Public Accountant National Unified Exam Certificate and the Certified Public Valuer Unified Exam Certificate[194]. - Mr. Pan obtained his Master of Business Administration degree from Macau University of Science and Technology in November 2022[197]. - Mr. Zhao has held various positions in financial institutions, including a project manager at Guangdong Guang Xin Certified Public Accountants and a senior merger and acquisition advisor[193]. - Mr. Pan served as the vice chairman and general manager of Guangdong Real Faith Enterprises Group Co., Ltd. from 1996 to 2006[196]. - Mr. Zhao has been with Foshan Financial since July 2017, overseeing general operations in the strategic investment department[191]. - Ms. Feng's previous role as a Supervisor indicates her familiarity with the company's governance and operations[200]. - Mr. Pan's extensive experience in business administration positions him well for his role as a non-executive Director[198].
中盈盛达融资担保(01543) - 2024 - 年度财报