佐力小贷(06866) - 2025 - 中期业绩

Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income Net profit for the six months ended June 30, 2025, decreased by 28.1% due to lower interest income and other net losses, despite impairment reversals | Metric | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Net Interest Income | 73,819 | 81,431 | -9.4% | | Impairment Losses | 4,594 | (12,528) | N/A (Shift from Loss to Gain) | | Profit Before Tax | 45,963 | 64,509 | -28.7% | | Profit and Total Comprehensive Income for the Period | 33,522 | 46,626 | -28.1% | | Profit Attributable to Equity Holders of the Company | 31,903 | 44,940 | -29.0% | | Basic and Diluted Earnings Per Share (RMB) | 0.03 | 0.04 | -25.0% | Consolidated Statement of Financial Position Total assets decreased due to reduced loans, while total liabilities significantly declined and net assets slightly increased | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,519,203 | 2,578,519 | -2.3% | | Loans and Advances to Customers | 2,402,371 | 2,462,054 | -2.4% | | Total Liabilities | 459,556 | 537,408 | -14.5% | | Interest-bearing Borrowings | 412,554 | 488,287 | -15.5% | | Total Equity | 2,059,647 | 2,041,111 | +0.9% | Consolidated Statement of Changes in Equity Total equity attributable to equity holders increased, driven by period profit and partially offset by distributed dividends - Profit and total comprehensive income for the period was RMB 33.522 million[7] - Approved and distributed dividends attributable to prior years totaled RMB 14.986 million[7] Condensed Consolidated Statement of Cash Flows Net cash from operating activities increased by 9.6% to RMB 106 million, while net cash outflow from financing activities expanded | Cash Flow Activities | Six Months Ended June 30, 2025 (RMB thousands) | Six Months Ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 105,964 | 96,685 | | Net Cash from Investing Activities | — | 58 | | Net Cash Used in Financing Activities | (106,195) | (89,466) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (231) | 7,277 | | Cash and Cash Equivalents at Period-End | 10,284 | 24,755 | Notes to the Financial Statements Basis of Preparation and Accounting Policies This interim financial report is prepared under HKAS 34 and reviewed by KPMG, with consistent accounting policies - Interim financial report was prepared in accordance with Hong Kong Accounting Standard 34[9] - The report is unaudited but was reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[10] Analysis of Key Financial Items This section details key income statement and balance sheet items, including a 9.4% drop in net interest income and a net impairment reversal 3 Net Interest Income Net interest income for H1 2025 decreased by 9.4% to RMB 73.819 million, primarily due to reduced interest income from customer loans | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income from Customer Loans | 90,211 | 102,550 | | Interest Expense from Non-Bank Borrowings | (15,822) | (20,556) | | Net Interest Income | 73,819 | 81,431 | 5 Impairment Losses A net impairment loss reversal of RMB 4.594 million was recorded, a significant contrast to the prior period's provision, indicating improved asset quality - For the six months ended June 30, 2025, impairment losses were a net reversal of RMB 4.594 million, compared to a provisioned loss of RMB 12.528 million in the same period last year[15] 10 Loans and Advances to Customers Net loans and advances to customers decreased by 2.4% to RMB 2.402 billion, with guaranteed loans comprising 98.0% and overdue loans slightly decreasing 按性質分析 | Loan Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Corporate Loans | 1,138,250 | 1,219,180 | | Retail Loans | 1,410,309 | 1,395,888 | | Internet Micro-lending | 23,000 | 25,466 | | Total Loans (excluding interest) | 2,571,559 | 2,640,534 | 按抵押物類型分析 | Collateral Type | June 30, 2025 (%) | December 31, 2024 (%) | | :--- | :--- | :--- | | Credit Loans | 1.0% | 1.1% | | Guaranteed Loans | 98.0% | 97.9% | | Mortgage Loans | 0.1% | 0.1% | | Pledged Loans | 0.9% | 0.9% | - Total overdue loans decreased from RMB 105 million at the end of 2024 to RMB 99.59 million as of June 30, 2025[23] 14 Interest-bearing Borrowings Total interest-bearing borrowings decreased by 15.5% to RMB 413 million, primarily due to the repayment of Euro-denominated borrowings | Borrowing Source | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Borrowings | 25,028 | 25,028 | | Euro-denominated Borrowings | 387,526 | 463,259 | | Total | 412,554 | 488,287 | 18 Financial Risk Management The group faces credit, liquidity, interest rate, and currency risks, with credit risk managed through strict controls and currency risk significantly reduced 18(a) Credit Risk Credit risk primarily arises from micro-lending, managed by a comprehensive risk mechanism, with low concentration despite geographical focus in Zhejiang Province - The group has established a credit risk management mechanism covering key operational stages of loan business, including pre-loan assessment, credit approval, and post-loan monitoring[44] - As of June 30, 2025, loan exposure to the largest customer and top five customers was 1.91% and 7.17% respectively, with manageable concentration[48] 18(b) Liquidity Risk Management ensures sufficient cash reserves by monitoring liquidity needs, with short-term liquidity appearing strong based on contractual cash flow analysis - The report provides a maturity analysis of financial assets and liabilities based on contractual undiscounted cash flows to assess liquidity risk[51] 18(c) Interest Rate Risk The group's interest rate risk is extremely low as most financial assets and liabilities are fixed-rate, limiting market rate fluctuation impact - The group's loans and advances to customers and interest-bearing borrowings are all at fixed interest rates, resulting in very low interest rate exposure[54] - Sensitivity analysis shows that a general increase of 50 basis points in interest rates is expected to increase net profit by approximately RMB 38 thousand over the next 12 months[55] 18(d) Currency Risk Currency risk, primarily from Euro-denominated borrowings, significantly reduced as exposure decreased from RMB 125 million to RMB 42.25 million Foreign Currency Exposure (Euro) | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest-bearing Borrowings | (42,250) | (124,527) | 20 Related Party Transactions Key related party transactions include guarantees for bank borrowings by the Chairman and property leases from Zuoli Holding Group, all on normal commercial terms - The Chairman of the Board and other related parties provided guarantees for the group totaling RMB 57.50 million in borrowings[65][67][108] - The group leased properties from related party Zuoli Holding Group Co., Ltd. and paid for utilities and catering expenses[66][69] Management Discussion and Analysis Industry Overview The company benefits from policy advantages in Zhejiang Province, holding a significant regional leading position as Huzhou's first green micro-lending company - The company seized opportunities from Zhejiang Province's common prosperity demonstration zone and Huzhou City's National Green Finance Reform and Innovation Pilot Zone, becoming Huzhou's first green micro-lending company[70] - In its main market, Deqing County, the group's loan balance accounted for approximately 86.8% of the total balance of local micro-lending companies, holding an absolute advantage in market share[71] Business Overview The company, Zhejiang's largest licensed micro-lender by registered capital, saw total loan balance decrease and average interest rate decline due to competition, yet asset quality improved Loan Portfolio Analysis Total loan balance decreased by 2.6% to RMB 2.572 billion, with leverage ratio declining and average interest rate dropping to 6.8% due to market competition | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Loans (RMB thousands) | 2,571,559 | 2,640,534 | | Leverage Ratio | 2.18 | 2.24 | - For the six months ended June 30, 2025, the average loan interest rate was 6.8%, a decrease from 7.6% in the same period last year, to cope with market competition and ensure asset quality[73][81] Asset Quality Asset quality indicators improved, with impaired loan ratio decreasing to 3.8% and provision coverage ratio increasing to 191%, enhancing risk resilience | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Impaired Loan Ratio | 3.8% | 3.9% | | Provision Coverage Ratio | 191% | 185% | | Overdue Loan Ratio | 3.8% | 4.0% | - Total overdue loans decreased from RMB 105 million at the end of 2024 to RMB 99.60 million As of August 15, 2025, RMB 2.50 million had been recovered[79] Financial Overview Performance faced pressure due to reduced net interest income and other net losses, despite a positive contribution from impairment loss reversals Operating Results Profit for the period decreased by 28.1% to RMB 33.50 million, primarily due to lower net interest income and other net losses, despite impairment reversals - Net interest income decreased primarily due to reduced loan balances and a decline in average loan interest rate from 7.6% to 6.8%[81] - Other net income turned into a loss, primarily due to a RMB 13.30 million reduction in government subsidies and a RMB 15.60 million decrease in exchange gains[83] - Impairment losses shifted from a provision of RMB 12.50 million in the same period last year to a reversal of RMB 4.60 million this period, positively contributing to profit[84] Liquidity and Capital Resources The company relies on equity, borrowings, and operating cash flow, with net cash from operations at RMB 106 million and reduced interest-bearing borrowings - For the six months ended June 30, 2025, net cash from operating activities was RMB 106 million[90] - Net cash outflow from financing activities was RMB 106 million, primarily used for repayment of RMB 187 million in interest-bearing borrowings[91] Key Financial Ratios Key financial ratios indicate stable profitability and optimized financial structure, with annualized ROE at 3.2% and debt-to-asset ratio significantly decreasing | Metric | Six Months Ended June 30, 2025 | For the Year Ended December 31, 2024 | | :--- | :--- | :--- | | Weighted Average Return on Equity (%) | 3.2 (annualized) | 3.2 | | Average Return on Assets (%) | 2.6 (annualized) | 2.5 | | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Debt-to-Asset Ratio (%) | 20.1 | 24.1 | Prospects The company will leverage policy support and its unique advantages to deepen green credit business, aiming for inclusive finance and sustainable development - The company will seize opportunities from Zhejiang Province's common prosperity demonstration zone and Huzhou's 'Two Mountains' concept to explore a sustainable green credit path[122] - The company has partnered with international institutions such as DEG and GCPF to introduce green loan concepts and technical support[123] - The company officially became Huzhou City's first green micro-lending company in May 2023[123] Other Information Corporate Governance The company is committed to high corporate governance standards and fully complied with the Corporate Governance Code during the reporting period - During the reporting period, the company fully complied with the Corporate Governance Code[125] Dividend Policy The Board decided not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year's policy - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[128] Other Disclosures No significant post-period events or listed securities transactions occurred, though a major shareholder pledged 27.33% of the company's domestic shares in April 2025 - On April 23, 2025, major shareholder Puhua Energy pledged 322,540,960 shares of domestic shares, representing 27.33% of the company's total issued share capital[130] - As of the end of the reporting period and the announcement date, there were no significant post-period events[129]