中国汇融(01290) - 2025 - 中期业绩

Summary Financial Summary For the six months ended June 30, 2025, China Huirong Financial Holdings Limited's operating revenue decreased by 2% year-on-year, while profit attributable to owners of the Company increased by 7%; total assets and loans to customers decreased, while bank balances and cash on hand increased | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Results | | | | | Operating Revenue | 345,814 | 351,380 | -2% | | Operating Costs | 221,387 | 211,488 | 5% | | Profit attributable to owners of the Company | 32,762 | 30,609 | 7% | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | 7% | | Financial Position | | | | | Total Assets | 3,319,707 | 3,504,127 | -5% | | Total Liabilities | 1,118,343 | 1,301,438 | -14% | | Loans to Customers | 2,375,043 | 2,517,986 | -6% | | Bank Balances and Cash on Hand | 164,877 | 147,893 | 11% | | Net Assets | 2,201,364 | 2,202,689 | 0% | Interim Condensed Consolidated Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's operating revenue was RMB 345,814 thousand, a 2% year-on-year decrease, with profit for the period at RMB 40,004 thousand, a 6% decrease, while profit attributable to owners of the Company increased by 7% to RMB 32,762 thousand | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income | 138,907 | 166,677 | | Revenue from Sales of Goods | 198,174 | 183,556 | | Operating Revenue | 345,814 | 351,380 | | Operating Costs | (221,387) | (211,488) | | Credit Impairment Losses | (68,424) | (46,136) | | Profit Before Income Tax | 49,540 | 57,157 | | Profit for the Period | 40,004 | 42,575 | | Profit attributable to owners of the Company | 32,762 | 30,609 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | - The proportion of profit for the period attributable to owners of the Company increased from 71.9% in 2024 to 81.9% in 2025, with a decrease in profit attributable to non-controlling interests[4] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 3,319,707 thousand, a 5% decrease from December 31, 2024; total liabilities were RMB 1,118,343 thousand, a 14% decrease; total equity remained stable, with a slight decrease of 0.06% | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 672,899 | 635,941 | | Total Current Assets | 2,646,808 | 2,868,186 | | Total Assets | 3,319,707 | 3,504,127 | | Equity and Liabilities | | | | Equity attributable to owners of the Company | 1,899,843 | 1,913,619 | | Non-controlling Interests | 301,521 | 289,070 | | Total Equity | 2,201,364 | 2,202,689 | | Total Non-current Liabilities | 228,555 | 354,935 | | Total Current Liabilities | 889,788 | 946,503 | | Total Liabilities | 1,118,343 | 1,301,438 | - Current portion of loans to customers decreased by approximately 6.7% from RMB 2,255,454 thousand at December 31, 2024, to RMB 2,103,928 thousand at June 30, 2025[5] - Bank balances and cash on hand increased by approximately 11.5% from RMB 147,893 thousand at December 31, 2024, to RMB 164,877 thousand at June 30, 2025[5] Notes to the Interim Condensed Consolidated Financial Information 1. General Information China Huirong Financial Holdings Limited, incorporated in the Cayman Islands, primarily provides secured and unsecured loan services to customers in China, with its shares listed on the Hong Kong Stock Exchange in October 2013 and financial information presented in RMB - The Company is an investment holding company primarily providing secured and unsecured loan services in China[7] - The Company's shares were listed on The Stock Exchange of Hong Kong Limited on October 28, 2013[7] 2. Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and on a going concern basis - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[8] - The Group continues to prepare its financial information on a going concern basis[9] 3. Significant Accounting Policies The Group's accounting policies are consistent with the 2024 consolidated financial statements, with the first-time application of HKAS 21 amendments on January 1, 2025, having no retrospective adjustment, while HKFRS 18, effective January 1, 2027, is expected to significantly impact financial statement presentation and disclosure - Accounting policies are consistent with the 2024 consolidated financial statements[10] - The first-time application of HKAS 21 amendments 'Lack of Exchangeability' from January 1, 2025, did not result in changes to accounting policies or retrospective adjustments[11] - HKFRS 18, effective January 1, 2027, is expected to significantly impact the presentation and disclosure of financial statements, and management is currently assessing its effects[12][13] 4. Critical Accounting Estimates and Judgments The significant judgments and key sources of estimation uncertainty applied by management in preparing the interim financial information are consistent with those used in the 2024 consolidated financial statements - Key accounting estimates and judgments are consistent with the 2024 consolidated financial statements[14] 5. Segment Information The Group's operations are divided into Inclusive Finance and Ecosystem Finance business segments, with the former primarily offering loan services and the latter covering supply chain technology, tech-enabled lending, factoring, insurance brokerage, and equity investment businesses; in the first half of 2025, both segments saw a decrease in profit before tax, while external operating revenue for Ecosystem Finance increased - The Group's business is divided into Inclusive Finance Business Segment and Ecosystem Finance Business Segment[15][16][17] Segment Performance | Metric (RMB thousands) | Inclusive Finance Business Segment (2025) | Ecosystem Finance Business Segment (2025) | Inclusive Finance Business Segment (2024) | Ecosystem Finance Business Segment (2024) | | :--- | :--- | :--- | :--- | :--- | | External Operating Revenue | 107,945 | 230,652 | 117,293 | 227,147 | | Profit/(Loss) Before Income Tax | 23,222 | 11,726 | 46,822 | 23,645 | | Segment Assets | 1,406,889 | 1,261,267 | 1,643,397 | 1,337,055 | | Segment Liabilities | (184,014) | (533,813) | (262,685) | (599,691) | 6. Interest Income For the six months ended June 30, 2025, the Group's total interest income was RMB 138,907 thousand, a decrease from RMB 161,906 thousand in the prior period, primarily due to a significant drop in interest income from secured loans to customers, partially offset by a substantial increase from unsecured loans to customers Interest Income by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Secured Loans to Customers | 54,457 | 96,718 | | Unsecured Loans to Customers | 80,553 | 48,155 | | Interest Income from Financial Assets Purchased Under Resale Agreements | 3,351 | 16,524 | | Interest Income from Bank Deposits | 546 | 509 | | Total | 138,907 | 161,906 | - Interest income from secured loans to customers decreased by 43.7% year-on-year, while interest income from unsecured loans to customers increased by 67.3% year-on-year[22] 7. Revenue from Sales of Goods and Cost of Sales The Group's sales of goods primarily include electronic products and daily necessities - Sales of goods primarily consist of electronic products and daily necessities[23] 8. Interest Expenses For the six months ended June 30, 2025, the Group's total interest expenses decreased by 17% to RMB 24,571 thousand from RMB 29,582 thousand in the prior period, mainly due to a significant reduction in interest expenses on micro-loan company borrowings Interest Expenses by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Expenses on Bank Borrowings | 15,755 | 15,268 | | Interest Expenses on Micro-loan Company Borrowings | 679 | 3,900 | | Interest Expenses on Other Borrowings | 8,005 | 10,075 | | Other Interest Expenses | 132 | 339 | | Total | 24,571 | 29,582 | - Interest expenses on micro-loan company borrowings decreased by 82.6% year-on-year[24] 9. Net Investment Income/(Loss) For the six months ended June 30, 2025, the Group's net investment income significantly decreased to RMB 6 thousand from RMB 1,218 thousand in the prior period, primarily due to the absence of net gains on disposal of financial assets this period Net Investment Income/(Loss) by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Gains/(Losses) from Fair Value Changes | — | (516) | | Net (Loss)/Gain on Disposal of Financial Assets | — | 1,734 | | Others | 6 | — | | Total | 6 | 1,218 | 10. Credit Impairment Losses For the six months ended June 30, 2025, the Group's credit impairment losses increased by 48.3% to RMB 68,424 thousand from RMB 46,136 thousand in the prior period, with credit impairment losses on loans to customers being the primary driver of this increase Credit Impairment Losses by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Credit Impairment Losses on Loans to Customers | 70,382 | 40,495 | | Credit Impairment Losses on Financial Guarantees | 1,569 | 2,276 | | Credit Impairment Losses on Financial Assets Purchased Under Resale Agreements | (3,527) | 3,365 | | Total | 68,424 | 46,136 | - Credit impairment losses on loans to customers increased by 73.8% year-on-year[25] 11. Other Operating Income For the six months ended June 30, 2025, the Group's other operating income significantly increased to RMB 28,197 thousand from RMB 5,548 thousand in the prior period, primarily driven by net gains on disposal of assets taken over in settlement of debts Other Operating Income by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Gain/(Loss) on Disposal of Assets Taken Over in Settlement of Debts | 21,748 | (127) | | Rental Income | 4,979 | 4,971 | | Others | 1,470 | 704 | | Total | 28,197 | 5,548 | - The shift from a net loss on disposal of assets taken over in settlement of debts in the prior period to a net gain in the current period is the main reason for the significant increase in other operating income[25] 12. Other Losses, Net For the six months ended June 30, 2025, the Group's other losses, net, decreased to RMB 126 thousand from RMB 186 thousand in the prior period, despite an increase in net exchange losses, due to higher government grants Other Losses, Net by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Exchange Losses | (396) | (266) | | Government Grants | 270 | 80 | | Total | (126) | (186) | 13. Income Tax Expense For the six months ended June 30, 2025, the Group's income tax expense decreased by 34.6% to RMB 9,536 thousand from RMB 14,582 thousand in the prior period, primarily due to a deferred tax credit and other adjustments Income Tax Expense by Category | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax | 13,402 | 15,395 | | Deferred Income Tax | (3,866) | (813) | | Total | 9,536 | 14,582 | - Deferred income tax shifted from a debit in the prior period to a credit in the current period, positively impacting income tax expense[25] - The Group is exempt from income tax in the Cayman Islands and British Virgin Islands, subject to a 16.5% profits tax rate in Hong Kong, and a 25% corporate income tax rate in mainland China, with preferential tax rates for small and micro-enterprises[26][27] 14. Earnings Per Share For the six months ended June 30, 2025, the Group's basic and diluted earnings per share both increased to RMB 0.030 from RMB 0.028 in the prior period, primarily due to an increase in profit attributable to owners of the Company, while the weighted average number of ordinary shares remained unchanged Earnings Per Share Details | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company (RMB thousands) | 32,762 | 30,609 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 1,090,335 | 1,090,335 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | | Diluted Earnings Per Share (RMB) | 0.030 | 0.028 | - The Group has not issued any potential dilutive ordinary shares, thus basic and diluted earnings per share are identical[30] 15. Dividends The Company paid a dividend of HKD 0.03 per share, totaling HKD 32.7 million (equivalent to RMB 29.8 million), for the year ended December 31, 2024, on June 26, 2025 - Dividends for the 2024 financial year of HKD 0.03 per share, totaling RMB 29.8 million, were paid on June 26, 2025[31] - Dividends for the 2023 financial year of HKD 0.02 per share, totaling RMB 19.8 million, were paid on June 28, 2024[31] 16. Property, Plant and Equipment As of June 30, 2025, the Group's property, plant and equipment had a carrying value of RMB 50,734 thousand, a slight decrease from RMB 51,562 thousand at December 31, 2024, with new additions of RMB 449 thousand during the period Property, Plant and Equipment Carrying Value | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 48,283 | 48,733 | | Motor Vehicles | 586 | 221 | | Electronic Equipment and Others | 1,865 | 2,608 | | Total Carrying Value | 50,734 | 51,562 | - Additions to property, plant and equipment amounted to RMB 449 thousand during the period[32] 17. Right-of-Use Assets and Leases As of June 30, 2025, the Group's right-of-use assets increased to RMB 17,605 thousand from RMB 15,709 thousand at December 31, 2024, with total lease liabilities also rising from RMB 3,765 thousand to RMB 6,277 thousand Right-of-Use Assets and Lease Liabilities | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Right-of-Use Assets | | | | Land Use Rights | 11,402 | 11,573 | | Properties | 6,203 | 4,136 | | Total Right-of-Use Assets | 17,605 | 15,709 | | Lease Liabilities | | | | Current | 3,126 | 1,801 | | Non-current | 3,151 | 1,964 | | Total Lease Liabilities | 6,277 | 3,765 | - Land use rights are pledged as collateral for non-current dedicated borrowings of RMB 164.3 million[35] 18. Investments Accounted for Using the Equity Method As of June 30, 2025, the Group's investments accounted for using the equity method remained stable at RMB 2,132 thousand, with the Group holding a 90% equity interest in Suzhou Cibei Enterprise Management Consulting Partnership and exercising joint control Investments Accounted for Using the Equity Method | Metric | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Balance at January 1 | 2,132 | 5,374 | | Capital Reduction | — | (1,252) | | Balance at June 30 | 2,132 | 4,122 | - The Group holds a 90% equity interest in Suzhou Cibei Enterprise Management Consulting Partnership and exercises joint control due to partnership agreement provisions, with the investment accounted for using the equity method[36] 19. Investment Properties As of June 30, 2025, the Group's investment properties had a fair value of RMB 169,746 thousand, consistent with December 31, 2024, primarily comprising Zhonghui Financial Building, which is partially leased out and measured at fair value, and pledged as collateral for non-current dedicated bank borrowings Investment Properties Fair Value | Category | June 30, 2025 (RMB thousands) | | :--- | :--- | | Zhonghui Financial Building | 168,066 | | Others | 1,680 | | Total Fair Value | 169,746 | - Zhonghui Financial Building is pledged as collateral for non-current dedicated bank borrowings of RMB 164.3 million[37] 20. Loans to Customers As of June 30, 2025, the Group's total net loans to customers decreased by 6% to RMB 2,375,043 thousand from December 31, 2024, with both current secured and unsecured loans decreasing, while non-current unsecured loans slightly increased; total net overdue loans decreased to RMB 629,385 thousand from RMB 669,021 thousand at December 31, 2024 Loans to Customers, Net | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Loans to Customers, Net | | | | Unsecured Loans | 271,115 | 262,532 | | Current Loans to Customers, Net | | | | Secured Loans | 1,209,950 | 1,382,366 | | Unsecured Loans | 893,978 | 873,088 | | Total Loans to Customers, Net | 2,375,043 | 2,517,986 | - Current secured loans, net, decreased by 12.5%, while current unsecured loans, net, increased by 2.4%[41][42] - Total net overdue loans decreased by 5.9% from RMB 669,021 thousand at December 31, 2024, to RMB 629,385 thousand at June 30, 2025[43] - The fixed annual interest rate range for chattel mortgage loans narrowed from 8.0% to 54.0% in 2024 to 8.0% to 36.0% in 2025[39] 21. Finance Lease Receivables As of June 30, 2025, the Group's net finance lease receivables increased by 29.8% to RMB 128,691 thousand from RMB 99,135 thousand at December 31, 2024, with both undiscounted lease payments and expected credit impairment losses increasing Finance Lease Receivables Details | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Undiscounted Lease Payments | 154,187 | 113,405 | | Less: Unearned Finance Lease Income | (18,412) | (8,755) | | Less: Expected Credit Impairment Losses | (7,084) | (5,515) | | Net Investment in Leases | 128,691 | 99,135 | | Non-current Finance Lease Receivables | 46,444 | 26,536 | | Current Finance Lease Receivables | 82,247 | 72,599 | - The average effective interest rate for signed contracts decreased from 12.66% per annum at December 31, 2024, to 11.17% per annum at June 30, 2025[48] 22. Deferred Tax As of June 30, 2025, the Group's net deferred tax assets increased to RMB 110,173 thousand from RMB 103,374 thousand at December 31, 2024, and net deferred tax liabilities increased to RMB 21,904 thousand from RMB 18,971 thousand, with both expected to reverse in more than one year Deferred Tax Assets and Liabilities | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred Tax Assets | | | | Expected Credit Losses on Financial Assets | 110,245 | 103,446 | | Deductible Losses | 1,381 | 4,314 | | Total Deferred Tax Assets | 111,626 | 107,760 | | Offset against deferred tax liabilities in accordance with offsetting criteria | (1,453) | (4,386) | | Net Deferred Tax Assets | 110,173 | 103,374 | | Deferred Tax Liabilities | | | | Net Gains from Investment Properties | 19,117 | 19,117 | | Net Gains from Financial Instruments at Fair Value Through Profit or Loss | 4,240 | 4,240 | | Total Deferred Tax Liabilities | 23,357 | 23,357 | | Offset against deferred tax assets in accordance with offsetting criteria | (1,453) | (4,386) | | Net Deferred Tax Liabilities | 21,904 | 18,971 | - Deferred tax assets are primarily composed of expected credit losses on financial assets, while deferred tax liabilities mainly consist of net gains from investment properties and financial instruments at fair value through profit or loss[49][50] 23. Financial Assets at Fair Value Through Profit or Loss As of June 30, 2025, the Group's total financial assets at fair value through profit or loss slightly decreased to RMB 115,782 thousand from RMB 119,859 thousand at December 31, 2024, primarily comprising equity securities and structured deposits Financial Assets at Fair Value Through Profit or Loss | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Equity Securities | 95,352 | 99,429 | | Structured Deposits | 20,430 | 20,430 | | Total | 115,782 | 119,859 | - Structured deposits of RMB 20.0 million are pledged as collateral for bank borrowings of RMB 19.0 million[52] 24. Bank Balances and Cash on Hand As of June 30, 2025, the Group's total bank balances and cash on hand increased by 11.5% to RMB 164,877 thousand from RMB 147,893 thousand at December 31, 2024, primarily due to a significant increase in bank time deposits with original maturity over three months Bank Balances and Cash on Hand | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Cash on Hand | 1,827 | 1,659 | | Demand Bank Deposits | 87,670 | 134,316 | | Securities Company Deposits | — | 96 | | Bank Time Deposits with Original Maturity Over Three Months, Net | 75,380 | 11,822 | | Total | 164,877 | 147,893 | - Net bank time deposits with original maturity over three months increased by 537.6% year-on-year[51] - Bank balances and cash on hand are primarily denominated in RMB, accounting for 97.4% of the total[51] 25. Share Capital As of June 30, 2025, the Company's issued and fully paid ordinary share capital remained unchanged at RMB 8,662,017 thousand, comprising 1,090,335,000 shares, consistent with December 31, 2024 Share Capital Details | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of Shares | 1,090,335,000 | 1,090,335,000 | | Ordinary Shares (RMB) | 8,662,017 | 8,662,017 | - There were no changes in ordinary shares during the period[53] 26. Share Premium and Other Reserves As of June 30, 2025, the Group's total share premium and other reserves decreased to RMB 1,175,077 thousand from RMB 1,191,717 thousand at January 1, 2025, primarily due to a reduction in capital reserve from partial disposal of a subsidiary Share Premium and Other Reserves | Category | January 1, 2025 (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | | Share Premium | 604,478 | 604,478 | | Capital Reserve | 498,574 | 481,934 | | Statutory Reserve | 77,715 | 77,715 | | General Reserve | 4,417 | 4,417 | | Share-based Payment Reserve | 6,533 | 6,533 | | Total | 1,191,717 | 1,175,077 | - Partial disposal of a subsidiary without losing control resulted in a RMB 16,640 thousand decrease in capital reserve[54] 27. Borrowings As of June 30, 2025, the Group's total borrowings decreased by 14% to RMB 952,974 thousand from RMB 1,107,583 thousand at December 31, 2024, with significant reductions in non-current bank borrowings and current micro-loan company borrowings, while current bank borrowings and employee borrowings increased Borrowings by Category | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Borrowings | | | | Bank Borrowings | 203,500 | 334,000 | | Current Borrowings | | | | Bank Borrowings | 457,810 | 425,020 | | Borrowings from Other Companies | 105,415 | 115,520 | | Borrowings from Micro-loan Companies | 40,000 | 95,000 | | Borrowings from Employees within the Group | 136,249 | 128,043 | | Borrowings from Ultimate Shareholders | 10,000 | 10,000 | | Total | 952,974 | 1,107,583 | - Non-current bank borrowings decreased by 39.1%, and current micro-loan company borrowings decreased by 57.9%[55] - Non-current bank borrowings are secured or guaranteed by Zhonghui Financial Building, subsidiary shares, and other assets[56] - Current bank borrowings have interest rates ranging from 1.49% to 6.0% and are partially guaranteed by structured deposits, Wuzhong Jiaye, and Wuzhong Group[57][58] 28. Other Current Liabilities As of June 30, 2025, the Group's total other current liabilities decreased by 13% to RMB 121,528 thousand from RMB 139,598 thousand at December 31, 2024, with significant reductions in payables for construction projects, advances from transferees of financial asset receivables, and deposits for resale arrangements, while bills payable significantly increased Other Current Liabilities by Category | Category | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Payables for Construction Projects | — | 14,899 | | Advances from Transferees of Financial Asset Receivables | — | 19,150 | | Advances from Customers for Goods | 487 | 13 | | Advances from Customers for Consulting Fees | — | 450 | | Employee Benefits Payable | 2,351 | 5,686 | | Taxes and Other Levies Payable | 2,254 | 3,676 | | Deposits for Resale Arrangements | — | 50,000 | | Bills Payable | 104,695 | 31,746 | | Other Financial Liabilities | 11,741 | 13,978 | | Total | 121,528 | 139,598 | - Bills payable increased by 230% year-on-year[59] 29. Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities, consistent with December 31, 2024 - The Group has no significant contingent liabilities[60] 30. Commitments As of June 30, 2025, the Group's total capital commitments remained unchanged at RMB 57,868 thousand, primarily comprising agreed capital contributions to Suzhou Cibei, Qianhui Tongcui, and Kangli Junzhuo Capital Commitments | Investee Company Name | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Suzhou Cibei | 42,868 | 42,868 | | Qianhui Tongcui | 10,000 | 10,000 | | Kangli Junzhuo | 5,000 | 5,000 | | Total | 57,868 | 57,868 | - Of the RMB 45.0 million agreed capital contribution to Suzhou Cibei, RMB 42.9 million remains unpaid[62] Management Discussion and Analysis 1. Business Review and Development During the reporting period, the Company maintained steady progress amidst a weak external economic environment, driving development through innovation, optimizing business structure, and strengthening risk control; the Inclusive Finance Business Segment focused on resolving existing issues and achieving new growth, while the Ecosystem Finance Business Segment maintained good development despite intensified market competition, with special asset investment business performing remarkably - The Company maintained steady progress, driving development through innovation, continuously optimizing business structure, strengthening risk control, and enhancing management efficiency[63] - The Inclusive Finance Business Segment focused on resolving existing real estate mortgage loans and achieving new growth, while steadily developing listed company stock pledge loans for unsecured loans[63] - The Ecosystem Finance Business Segment's commercial factoring business maintained good development, and key projects in special asset investment business exited safely, contributing significantly to profit[63] 1.1 Inclusive Finance Business Segment The Inclusive Finance Business Segment provides loan services to SMEs and individuals through pawn, technology micro-lending, bridging loan funds, art investment, and overseas financial businesses; during the period, real estate mortgage loan interest income decreased, unsecured loan interest income increased, technology micro-lending and bridging loan fund businesses scaled down, art investment business income decreased, and overseas financial business actively reduced loan balances - The Inclusive Finance Business Segment primarily provides services to customers through secured and unsecured loans, covering cities such as Suzhou, Chengdu, Wuhan, Hefei, Changsha, Nanjing, and Fuzhou[64][65] Pawn Business The pawn business includes real estate and chattel mortgage loans; as of June 30, 2025, real estate mortgage loan balances and interest income decreased due to declining property prices and increased market competition, while unsecured loan balances and interest income rose, benefiting from new listed company stock pledge business Pawn Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Real Estate Mortgage Loans Granted (RMB millions) | 107 | 254 | | Real Estate Mortgage Loan Balance (Principal) at Period End (RMB millions) | 683 | 793 | | Interest Income from Real Estate Mortgage Loans (RMB thousands) | 16,596 | 54,830 | | Chattel Mortgage Loan Balance (Principal) at Period End (RMB millions) | 175 | 173 | | Interest Income from Chattel Mortgage Loans (RMB thousands) | 15,392 | 15,786 | | Total New Unsecured Loans Granted (RMB millions) | 286 | 374 | | Unsecured Loan Balance (Principal) at Period End (RMB millions) | 482 | 436 | | Interest Income from Unsecured Loans (RMB thousands) | 44,310 | 10,175 | - Interest income from real estate mortgage loans decreased by 69.7% year-on-year, while interest income from unsecured loans increased by 335.5% year-on-year[67] - The pawn business will prudently reduce the scale of art mortgage loans in the future[72] - Unsecured loans will steadily reduce the balance of existing businesses and expand the scale of listed company stock pledge businesses in the future[73] Technology Micro-loan Business The technology micro-loan business, primarily conducted through Dongshan Micro-loan, provides secured, guaranteed, and unsecured loans to SMEs and individuals; as of June 30, 2025, both new loan amounts and interest income decreased due to intensified market competition and challenges in business expansion, with future plans to increase services for technology-driven and low-carbon SMEs Technology Micro-loan Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Loans Granted (RMB millions) | 151 | 427 | | Balance (Principal) at Period End (RMB millions) | 495 | 547 | | Interest Income (RMB thousands) | 22,144 | 24,499 | - Total new loans granted decreased by 64.6% year-on-year, and interest income decreased by 9.6% year-on-year[75] - The future development direction is to increase services for technology-driven and low-carbon SMEs, fulfilling social responsibility for inclusive finance[79] Bridging Loan Fund Business The bridging loan fund business, primarily conducted through Huifang Rongtong, provides short-term bridging loan services to SMEs and local government platforms; as of June 30, 2025, both new loan amounts and interest income decreased due to the introduction of banks' interest-free renewal loans and regulatory requirements, with future plans to maintain customer acquisition scenarios and support SMEs' bridging loan needs Bridging Loan Fund Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Loans Granted (RMB millions) | 1,084 | 2,360 | | Interest Income (RMB thousands) | 1,179 | 2,684 | - Total new loans granted decreased by 54.1% year-on-year, and interest income decreased by 56.1% year-on-year[81] - The future development direction is to adhere to the customer acquisition scenarios of bridging loan funds and firmly support SMEs' bridging loan needs[83] Art Investment Business The art investment business, primarily conducted through Nanjing Yiling, covers all categories of art, including modern and contemporary Chinese and international paintings; as of June 30, 2025, art transaction inventory and operating income both decreased due to economic downturn and reduced art market transaction volume and prices, with future plans to moderately reduce transaction scale and build a comprehensive service platform for the entire art industry chain Art Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Art Transaction Inventory Amount at Period End (RMB millions) | 114 | 133 | | Art Business Operating Income (RMB thousands) | 7,700 | 9,148 | - Art business operating income decreased by 15.8% year-on-year[85] - The future development direction is to strive to build a comprehensive service platform for the entire art industry chain and develop into a well-known regional art comprehensive service institution[87] Overseas Financial Business The overseas financial business, primarily conducted through Huifang Investment in Hong Kong, provides guarantee-backed loans; as of June 30, 2025, both loan balances and interest income decreased due to the company's proactive reduction of loan balances to control operating risks, with future plans to explore opportunities in pawn and digital assets in more overseas countries and regions like Southeast Asia Overseas Financial Business Performance | Metric (HKD millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Balance (Principal) at Period End (HKD millions) | 20 | 23 | | Interest Income (HKD thousands) | 545 | 724 | - Interest income decreased by 24.7% year-on-year[88] - The future development direction is to seek layout opportunities in pawn, digital assets, and other fields in more overseas countries and regions like Southeast Asia[90] 1.2 Ecosystem Finance Business Segment The Ecosystem Finance Business Segment encompasses commercial factoring, finance leasing, supply chain management, equity investment, special asset investment, and insurance agency businesses; during the period, commercial factoring saw increased balances but decreased income, finance leasing expanded with increased income, supply chain management sales revenue rose, equity investment generated positive income, key special asset investment projects exited safely, and insurance agency business income grew - The Ecosystem Finance Business Segment is committed to supply chain technology, tech-enabled lending, factoring, insurance brokerage, and equity investment businesses[91][92] Commercial Factoring Business The commercial factoring business, primarily conducted through Huida Factoring, provides trade financing services to SMEs; as of June 30, 2025, both new accounts receivable factoring business amounts and period-end balances increased, but the combined interest and service fee income decreased, mainly due to overdue businesses entering litigation, with future plans to continue focusing on government project factoring and promote multi-dimensional financing Commercial Factoring Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Accounts Receivable Factoring Business Amount (RMB millions) | 120 | 98 | | Balance (Principal) at Period End (RMB millions) | 460 | 421 | | Interest Income (RMB thousands) | 16,249 | 18,208 | | Service Fee Income (RMB thousands) | 2,249 | 2,938 | - Total new accounts receivable factoring business amount increased by 22.4% year-on-year, and period-end balance increased by 9.3% year-on-year[94] - Combined interest income and service fee income decreased by 18.2% year-on-year[94] - The future development direction is to monitor local government accounts payable, dynamically adjust business scale, and promote multi-dimensional financing[96] Finance Lease Business The finance lease business, primarily conducted through Huifang Rongzu, provides direct finance lease and sale-and-leaseback services; as of June 30, 2025, both new finance lease transaction amounts and period-end balances increased, with combined interest and service fee income growing due to business structure optimization and scale expansion, and future plans to explore direct lease opportunities in advanced manufacturing, healthcare, and public utilities Finance Lease Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total New Finance Lease Transactions (RMB millions) | 90 | 29 | | Balance (Principal) at Period End (RMB millions) | 135 | 109 | | Interest Income (RMB thousands) | 5,674 | 4,531 | | Service Fee Income (RMB thousands) | 472 | 241 | - Total new finance lease transactions increased by 210.3% year-on-year, and combined interest income and service fee income increased by 24.9% year-on-year[98] - The future development direction is to explore direct lease opportunities in advanced manufacturing, healthcare, and public utilities[100] Supply Chain Management Business The supply chain management business, primarily conducted through Huifang Supply Chain, focuses on consumer goods such as grain, oil, and fresh produce; as of June 30, 2025, both total transaction volume and sales revenue increased due to business structure optimization and higher fresh produce sales, with future plans to actively expand partnerships with qualified entities to establish long-term, large-volume supply chain collaborations Supply Chain Management Business Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 747 | 643 | | Sales Revenue | 198,171 | 183,556 | | Grain and Oil Sales Revenue | 161,206 | 168,989 | | Fresh Produce Sales Revenue | 35,726 | 7,230 | - Sales revenue increased by 7.9% year-on-year, with fresh produce sales revenue increasing by 394.1% year-on-year[101] - The future development direction is to actively expand partnerships with qualified entities and establish long-term, large-volume supply chain collaborations[103] Equity Investment Business The equity investment business, primarily conducted through Huifang Rongcui, aims to achieve synergistic development of debt and equity, investing in strategic emerging industries such as advanced manufacturing and semiconductors; as of June 30, 2025, period-end investment principal slightly decreased, with investment income of RMB 6 thousand, and future plans to prudently add new investment projects, prioritize post-investment management of existing projects, and accelerate project exits Equity Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Investment Principal Amount at Period End (RMB millions) | 79 | 81 | | Investment Income (RMB thousands) | 6 | (3) | - Investment income shifted from a loss in the prior period to a profit[104] - The future development direction is to monitor equity investment market policy trends, prudently add new investment projects, and accelerate the exit of existing projects[107] Special Asset Investment Business The special asset investment business, primarily conducted through Qingdao Wanchen, focuses on the acquisition, disposal, and operation of special assets; as of June 30, 2025, period-end investment balances significantly decreased due to the successful exit of two key projects, Guangda Xueke and Hongzhuang Commercial, with interest income of RMB 3,351 thousand, and future plans to actively seek target investment opportunities, deepen debt investment through bankruptcy and pre-reorganization, and build a deep cooperation network Special Asset Investment Business Performance | Metric (RMB millions/thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Investment Amount at Period End (RMB millions) | 2 | 306 | | Interest Income (RMB thousands) | 3,351 | 16,524 | - Period-end investment balance decreased by 99.3% year-on-year, and interest income decreased by 79.7% year-on-year[108] - Two key projects, Guangda Xueke and Hongzhuang Commercial, successfully exited during the reporting period[109][110] - The future development direction is to actively seek target investment opportunities, deepen debt investment through bankruptcy and pre-reorganization, and build a deep cooperation network[111] Insurance Agency Business The insurance agency business, primarily conducted through Huifang Anda, covers property insurance, credit guarantee insurance, and other types; as of June 30, 2025, both total transaction volume and commission income increased due to vigorous expansion of new businesses, with future plans to strive for new co-insurance partnerships and explore opportunities in healthcare and education sectors Insurance Agency Business Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Transactions | 746 | 37 | | Commission Income | 173 | 127 | - Total number of transactions increased by 1916.2% year-on-year, and commission income increased by 36.2% year-on-year[113] - The future development direction is to strive for new co-insurance partnerships, explore opportunities in healthcare and education sectors, and introduce a competitive team of agents[114] 2. Financial Review As of June 30, 2025, the Group's operating revenue decreased year-on-year due to macroeconomic conditions and credit policies, yet profit attributable to owners of the Company increased, mainly driven by a reduced proportion of non-controlling interests; while both Inclusive Finance and Ecosystem Finance segments saw a decline in profit before tax, the Headquarters and Other segments experienced an increase in both operating revenue and profit before tax Financial Performance Summary | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 345,814 | 351,380 | | Net Operating Income | 84,206 | 100,522 | | Profit attributable to owners of the Company | 32,762 | 30,609 | | Basic Earnings Per Share (RMB) | 0.030 | 0.028 | - Operating revenue decreased by 2% year-on-year, while profit attributable to owners of the Company increased by 7% year-on-year[116] 2.2.1 Inclusive Finance Business Segment As of June 30, 2025, the Inclusive Finance Business Segment's operating revenue decreased by 8% year-on-year, and profit before tax decreased by 50% year-on-year, primarily due to a slowdown in macroeconomic growth, reduced loan scale from lower loan prime rates, and increased expected credit losses Inclusive Finance Business Segment Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 107,945 | 117,293 | | Profit Before Tax | 23,222 | 46,822 | - The decrease in operating revenue was mainly affected by China's economic slowdown and lower loan prime rates[117] - The decrease in profit before tax was primarily due to lower operating revenue and increased expected credit losses[117] 2.2.2 Ecosystem Finance Business Segment As of June 30, 2025, the Ecosystem Finance Business Segment's operating revenue increased by 1.6% year-on-year, primarily driven by higher sales revenue from the supply chain management business; however, profit before tax decreased by 50.4% year-on-year, mainly due to the transfer of some operating revenue from special asset management business to the Headquarters and Other segments Ecosystem Finance Business Segment Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 230,894 | 227,298 | | Profit Before Tax | 11,726 | 23,645 | - The increase in operating revenue was primarily driven by sales revenue from the supply chain management business[118] - The decrease in profit before tax was mainly due to the transfer of some operating revenue from special asset management business to the Headquarters and Other segments[119] 2.2.3 Headquarters and Others As of June 30, 2025, the Headquarters and Other segments' operating revenue increased by 264.7% year-on-year, and profit before tax shifted from a loss to a profit, primarily due to the transfer of some operating revenue from special asset management business; the Headquarters will continue to promote refined management to increase revenue and reduce expenses Headquarters and Others Performance | Metric (RMB thousands) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Operating Revenue | 40,016 | 10,972 | | Profit/(Loss) Before Tax | 14,592 | (13,310) | - The increase in operating revenue and profit before tax was mainly due to the transfer of some operating revenue from special asset management business[121] 3. Credit Risk The Group's credit risk exposure is primarily concentrated in loans to customers; as of June 30, 2025, total credit impairment provisions amounted to RMB 652,373 thousand, a decrease of RMB 173,380 thousand from the prior year-end, mainly due to the transfer of some loans to Stage 3 and the write-off of Stage 3 equity pledge loans, with comprehensive credit risk management and internal control measures in place for all lending businesses - As of June 30, 2025, expected credit loss provisions for loans to customers totaled RMB 652,373 thousand, representing approximately 21.55% of total loans to customers (before provisions)[128] - The Group's total impairment provisions decreased by RMB 173,380 thousand from the prior year-end[128] - Assets written off during the reporting period amounted to RMB 114 million, primarily consisting of Stage 3 equity pledge loans[129][130] - The increase in new litigation-involved secured and unsecured loan balances compared to the prior period reflects the Company's intensified efforts in debt collection and disposal of risky assets[132] 3.3.1 Credit Risk Management The Group's lending business is categorized into four units: pawn, technology micro-lending, overseas finance, bridging loan funds, commercial factoring, and finance leasing; each unit has established clear guidelines, policies, and measures for pre-loan assessment, loan granting, post-loan monitoring, and loan recovery to effectively manage credit risk - The Group's lending business primarily includes four business units: pawn, technology micro-lending, overseas finance, bridging loan funds, commercial factoring, and finance leasing[133] - Each business unit has established clear guidelines, policies, and measures for credit risk assessment, loan granting, post-loan monitoring, and risk management[133] 3.3.1.1 Pawn Business, Micro-loan Business, Overseas Financial Business Credit risk management for these business units covers both secured and unsecured loans, with pre-loan assessment including due diligence and credit evaluation, treating renewed loans as new applications; loan granting follows clear approval standards and disbursement processes, while post-loan monitoring and recovery procedures are stringent, supported by a comprehensive management system for documentation and early warnings - Pre-loan assessment for secured loans includes verifying customer identity, financial status, collateral appraisal reports, and on-site inspections[136] - Due diligence for unsecured loans includes verifying basic customer information, financial information, operating data, and guarantor information[146][147] - All loan renewals are treated as new loan applications and assessed using the same procedures[139][149] 3.3.1.2 Bridging Loan Fund Business The bridging loan fund business provides short-term loans to SMEs to alleviate cash flow pressure from 'repay first, then borrow again' policies; pre-loan assessment includes due diligence and credit evaluation, with clear approval standards for loan granting, and post-loan monitoring involves comprehensive tracking, early warning mechanisms, and recovery plans for overdue clients - The bridging loan fund business aims to alleviate SMEs' cash flow pressure from 'repay first, then borrow again' policies[157] - The credit risks undertaken by the Group in the bridging loan fund business include changes in bank loan renewal conditions, SMEs not meeting renewal criteria, misappropriation of loan funds, and overdue repayments[161] - Post-loan monitoring tracks and supervises the six stages of the bridging loan cycle and establishes an early warning mechanism[166] 3.3.1.3 Commercial Factoring Business Credit risk management for commercial factoring involves due diligence and credit evaluation of clients and debtors, focusing on the authenticity, legality, and recoverability of accounts receivable; post-loan monitoring through regular collection of financial statements and on-site investigations, with immediate collection measures taken for unredeemed accounts receivable or debtor defaults - Due diligence includes collecting accounts receivable information, verifying registration results, and reviewing business licenses and financial statements[169] - Credit evaluation categorizes clients and debtors into manufacturing (or service-oriented) enterprises and engineering project enterprises, with different assessment standards applied[170] - Post-loan monitoring is conducted through monthly or quarterly collection of client financial statements, on-site investigations, and credit record monitoring[175] 3.3.1.4 Finance Lease Business Credit risk management for finance leasing includes due diligence and credit evaluation of clients, potentially requiring additional collateral or guarantees for loan granting; post-loan monitoring involves regular review of lessee's operating conditions and financial reports, with the right to demand payment or dispose of leased assets in case of rental payment defaults or non-fulfillment of obligations - Credit evaluation comprehensively considers the client's industry and reputation, cash flow, solvency, liquidity, value, and realizability of leased assets[180] - Depending on the client's creditworthiness, the lessee and third parties may be required to provide additional collateral or guarantees[182] - Post-loan monitoring regularly reviews changes in the lessee's operating conditions, solvency, creditworthiness, and debt obligations[185] 3.3.2 Internal Control The Group has established a comprehensive risk management system covering all employees, products, and processes, including separation of credit assessment and loan disbursement, multi-level loan approval policies, post-loan monitoring procedures, an early warning system, and policies for managing defaulted debts and bad debt write-offs - Multi-level loan approval policies are established to clarify responsibilities for different positions, promoting integrity and accountability among front, middle, and back-office staff[188] - Post-loan monitoring and management procedures are implemented for continuous monitoring and management of credit risk and the entire loan process[188] - A comprehensive management system with an early warning system is established to ensure accurate and timely recording of each transaction and identification of defaulted loans[188] 4. Capital Expenditure For the six months ended June 30, 2025, the Group's capital expenditure decreased to RMB 4,300 thousand from RMB 6,581 thousand in the prior period, primarily including property, plant and equipment, intangible assets, and investment properties - Capital expenditure for the six months ended June 30, 2025, was RMB 4,300 thousand, a 34.6% year-on-year decrease[196] 5. Foreign Exchange Exposure For the six months ended June 30, 2025, the Group incurred net exchange losses of RMB 396 thousand, an increase from RMB 266 thousand in the prior period; as the Group primarily conducts business transactions in RMB, it does not face significant foreign exchange risk and has not undertaken any related hedging - For the six months ended June 30, 2025, the Group incurred net exchange losses of RMB 396 thousand, a 48.9% year-on-year increase[197] - The Group primarily conducts business transactions in RMB, thus not facing significant foreign exchange risk and not undertaking any hedging[197] 6. Pledged Assets As of June 30, 2025, the Group's land use rights and Zhonghui Financial Building were pledged as collateral for non-current bank borrowings, and RMB 20.0 million in structured deposits were pledged as collateral for RMB 19.0 million in bank borrowings - Land use rights and Zhonghui Financial Building are pledged as collateral for non-current bank borrowings of RMB 164.3 million[198] - Structured deposits of RMB 20.0 million are pledged as collateral for bank borrowings of RMB 19.0 million[198] 7. Significant Investments, Acquisitions and Disposals During the reporting period, the Group completed the acquisition and disposal of Guangda Jiaoke and Hongzhuang Commercial, which were commercially aimed at providing financing solutions to customers, generating consulting service income and interest income, and creating value for the company and shareholders - The Group completed the acquisition and disposal of Guangda Jiaoke, generating consulting service income of RMB 3 million and interest income of RMB 3.3 million[202] - The Group completed the acquisition and disposal of Hongzhuang Commercial, whose commercial substance was to provide financing to Suzhou Xinwei for the acquisition of Hongzhuang Commercial[204][205] - The Board believes these acquisitions and disposals provided opportunities for the Group to generate investment returns and offer financing solutions to customers, achieving a win-win outcome[202][205] 8. Contingent Liabilities, Contractual Obligations, and Cash Flow Analysis As of June 30, 2025, the Group had no significant contingent liabilities, with total capital commitments of RMB 57,868 thousand; during the reporting period, net cash inflow from operating activities was RMB 261,486 thousand, net cash outflow from investing activities was RMB 108,449 thousand, and net cash outflow from financing activities was RMB 199,313 thousand, resulting in a net decrease in cash and cash equivalents - The Group has no significant contingent liabilities[206] Cash Flow Summary | Category | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Inflow/(Outflow) from Operating Activities | 261,486 | (207,990) | | Net Cash (Outflow)/Inflow from Investing Activities | (108,449) | 3,772 | | Net Cash (Outflow)/Inflow from Financing Activities | (199,313) | 189,441 | | Net Decrease in Cash and Cash Equivalents | (46,276) | (14,777) | - Net cash inflow from operating activities was primarily due to a decrease in loans to customers[209] - Net cash outflow from investing activities was mainly due to reduced investment activities amidst a macroeconomic downturn[210] - Net cash outflow from financing activities was primarily due to a decrease in new borrowings and an increase in repayment of borrowings[211] 9. Human Resources and Employee Benefits As of June 30, 2025, the Group had 153 full-time employees, a decrease of 3 from December 31, 2024; staff salaries and benefits amounted to RMB 15,542 thousand, a year-on-year decrease of RMB 5,084 thousand, with the Group committed to human resource optimization, providing training, and complying with China's social security and housing provident fund responsibilities - As of June 30, 2025, the number of full-time employees was 153, a decrease of 3 from December 31, 2024[212] - Staff salaries and benefits amounted to RMB 15,542 thousand, a year-on-year decrease of RMB 5,084 thousand[212] - The Group continues to optimize human resources and provides training to promote employees' personal and professional development[212] 10. Future Plans for Significant Investments Aside from disclosed capital commitments, the Group has no other significant investment and capital asset acquisition plans but will continue to seek new business development opportunities, with investments funded by internal resources and bank financing - Aside from disclosed capital commitments, the Group has no other significant investment and capital asset acquisition plans[214] - The Group will continue to seek new business development opportunities, with investments funded by internal resources and bank financing[214] 11. Events After Reporting Period As of the date of this announcement, no significant events have occurred after the reporting period, other than those already disclosed - No significant events occurred after the reporting period and up to the date of this announcement[215] Future Outlook The Group will continue to implement a dual-driven strategy of inclusive finance and ecosystem finance; the Inclusive Finance Business Segment will deepen due diligence, strictly control risks, expand scale, and maintain stable development of art investment business; the Ecosystem Finance Business Segment will intensify commercial factoring expansion, strengthen post-loan management for finance leasing,