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[6]. - The company has expanded its business network to cover all major cities in Guangdong province and certain cities in Anhui province[6]. - The company provides guarantees and entrusted loans to SMEs and individual business proprietors, and has been offering micro-lending since July 2011 through Foshan Micro Credit[7]. - Guangdong Join-Share has established strong cooperative relationships with various banks and non-bank financial institutions, enhancing its market position and reducing credit risks[8]. - The company has a diverse shareholder base without a controlling shareholder, ensuring management independence and prudent corporate governance[8]. - Guangdong Join-Share holds an "AA" corporate rating from CSCI Pengyuan Credit Rating Co., Ltd., indicating a stable outlook[8]. - The company's H Shares were successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on December 23, 2015, laying a solid foundation for future development[12]. Financial Performance - For the year ended December 31, 2021, total revenue was approximately RMB 318.70 million, representing an increase of approximately 3.92% compared to the previous year[27]. - Profit for the year was approximately RMB 96.35 million, with a net profit margin of 31.07%[27]. - Profit before taxation decreased by approximately 11.04% to RMB 137.25 million compared to the previous year[28]. - Profit attributable to equity shareholders was approximately RMB 81.99 million, a decrease of approximately 23.07% year-on-year[28]. - The Board recommended a final dividend of RMB 0.05 per share for the year ended December 31, 2021, down from RMB 0.06 per share in 2020[28]. - Total assets as of December 31, 2021, were approximately RMB 3,445.07 million, with total liabilities of approximately RMB 1,076.28 million[33]. - The return on net assets was 4.1%, while the return on assets was 2.8%[33]. Business Growth and Strategy - The company successfully issued the first tranche of corporate bonds to provide lower costs and better quality financial supply to SMEs[41]. - The company plans to focus on compliant, collaborative, innovative, and mutually beneficial development strategies in 2022 to enhance profitability[48]. - The company aims to optimize group control and improve incentive mechanisms to further boost its financial performance[51]. - The Group's annual business volume is approximately RMB 20 billion to RMB 30 billion, having served over 12,000 enterprises with a cumulative service amount exceeding RMB 120 billion over 18 years[131]. - The Group plans to innovate its business model to create new profit growth points in 2022[129]. Market Environment - The central government implemented macroeconomic policies that included tax cuts and fee reductions exceeding RMB 1 trillion, benefiting market players[40]. - Large commercial banks' inclusive loans to SMEs increased by more than 40%, contributing to a stable decline in comprehensive financing costs for enterprises[40]. - In 2021, China's GDP reached RMB 114.4 trillion, growing by 8.1% year-on-year, marking a strong start for the "14th Five-Year Plan"[53]. - The small and medium-sized enterprises development index (SMEDI) was 86.4 in December 2021, reflecting a 0.1 percentage point increase from the previous month, indicating a recovery trend[56]. - The balance of inclusive small and micro loans in the PRC reached RMB 19.23 trillion at the end of 2021, representing a year-on-year increase of 27.3%[116]. Operational Highlights - As of December 31, 2021, the Group's outstanding guarantee balance was approximately RMB9,967.71 million, an increase from RMB9,333.52 million as of December 31, 2020, representing a growth of 6.8%[62]. - For the year ended December 31, 2021, the net guarantee fee income was approximately RMB193.17 million, up from RMB176.57 million in 2020, reflecting a year-over-year increase of 9.4%[62]. - The balance of entrusted loans as of December 31, 2021, was approximately RMB234.92 million, compared to RMB158.57 million as of December 31, 2020, indicating a significant increase of 48.1%[63]. - The balance of micro-lending as of December 31, 2021, was approximately RMB434.65 million, an increase from RMB379.51 million as of December 31, 2020, which is a growth of 14.5%[64]. - The Group's total guarantee fee income increased by approximately RMB15.17 million, or approximately 7.02%, from approximately RMB216.25 million in 2020 to approximately RMB231.42 million in 2021[81]. Management and Leadership - Mr. Wu Liejin has been with the Group since May 23, 2003, and is responsible for overall development planning and business operations[164]. - Mr. Wu has approximately 22 years of experience in the finance industry, having held various managerial positions in financing guarantee and investment companies[170]. - Mr. Li beneficially owns 77,720,000 domestic shares and 35,000,000 H shares as of the report date[190]. - Mr. Zhang has approximately 11 years of experience in enterprise operations and management[178]. - Mr. Luo Zhenqing has approximately 25 years of experience in state-owned assets and enterprise management[192]. Regulatory Compliance - The Group has complied with industry regulatory requirements and obtained the business license for financing guarantee business from Guangdong Financial Supervisory Authority[58]. - The statutory deposit reserve ratio for small financial institutions has been reduced to 9%, a decrease of 10% compared to previous levels, to stabilize support for small and micro enterprises[119]. Challenges and Risks - Provisions charged for guarantee losses increased significantly by approximately RMB7.44 million, or approximately 264.77%, from approximately RMB2.81 million in 2020 to approximately RMB10.25 million in 2021[92]. - The Group recorded share of losses of associates of approximately RMB3.02 million for 2021 compared to share of gains of approximately RMB15.11 million for 2020[91]. - Operating expenses increased by approximately RMB11.15 million, or approximately 9.77%, from approximately RMB114.10 million in 2020 to approximately RMB125.25 million in 2021[102].
中盈盛达融资担保(01543) - 2021 - 年度财报