Economic Overview - In the first half of 2022, China's GDP reached approximately RMB 56.2642 trillion, representing a year-on-year increase of approximately 2.5% at constant prices[12]. - In the second quarter of 2022, China's GDP was RMB 29.2464 trillion, showing a quarter-on-quarter increase of 0.4% at constant prices[12]. - Net exports contributed 0.9 percentage points to economic growth in the first half of 2022, with a contribution of 1.1 percentage points in the second quarter[12]. - The management emphasizes the resilience of China's economic development despite global setbacks[12]. - The overall economic development trend in China is showing steady and positive signs[12]. - The Group aims to enhance its capital service functions and support private enterprises' financing under favorable policies for SMEs[130]. - The financing guarantee industry in China is expected to develop in a professional and commercial direction, promoting sustainable development of the real economy[130]. Company Performance - In the first half of 2022, the Group recorded total revenue of RMB178.21 million[15]. - For the six months ended June 30, 2022, the net guarantee fee income was approximately RMB88.73 million, stable compared to RMB88.19 million for the same period in 2021[24]. - The Group's net interest income was approximately RMB 55.15 million, representing an increase of approximately 35.84% compared to RMB 40.60 million for the same period in 2021[39]. - The Group's profit before taxation decreased by approximately RMB33.71 million, or approximately 43.39%, to approximately RMB43.98 million for the six months ended 30 June 2022 from approximately RMB77.69 million for the corresponding period in 2021[109]. - The Group's profit for the period decreased by approximately RMB25.52 million, or approximately 44.34%, to approximately RMB32.03 million for the six months ended 30 June 2022 from approximately RMB57.56 million for the corresponding period in 2021[112]. - The Group's net profit margin decreased to approximately 20.10% for the six months ended 30 June 2022 from approximately 39.96% for the corresponding period in 2021[112]. Financial Position - As of June 30, 2022, the Group's total outstanding guarantee was approximately RMB10,420.84 million, an increase from RMB9,967.71 million as of December 31, 2021[24]. - The Group's balance of outstanding guarantees increased by approximately 4.55% from approximately RMB9,967.71 million for the six months ended 30 June 2021 to approximately RMB10,420.84 million for the six months ended 30 June 2022[100]. - The Group's interest-bearing borrowings amounted to approximately RMB130.19 million, an increase from RMB69.42 million as of December 31, 2021[151]. - The gearing ratios of the Group were approximately 33.85% as of June 30, 2022, up from 31.24% as of December 31, 2021, primarily due to increased interest-bearing borrowings[154]. Risk Management - The company conducts regular post-transaction supervision every half month, month, two months, three months, or six months based on the project's risk profile[45]. - Risk screening is performed to promote healthy business development and risk control, particularly for industries with greater risks or abnormal counter-guarantee conditions[49]. - The company initiates collection and recovery processes if it assesses significant hidden risks or risk exposure in projects[55]. - The company classifies customer risk profiles into five categories: "normal," "special-attention," "substandard," "suspicious," and "loss," adjusting supervision grades and review frequencies accordingly[54]. - The risk management department conducts thorough assessments for overdue loans, with actions initiated if loans remain overdue for more than 45 days[79]. SME Support and Development - The Small and Medium Enterprises Development Index (SMEDI) of PRC was 88.4 in June 2022, reflecting a 0.2 point increase after four consecutive months of decline[15]. - The Group aims to establish a systematic investment and financing service platform for SMEs to support their transformation and upgrade[16]. - The Group has provided financial services to over 15,000 SMEs, with an accumulated service amount exceeding RMB 150 billion[135]. - By June 30, 2022, the balance of inclusive loans to SMEs reached RMB21.77 trillion, reflecting a year-on-year growth of 22.64%[122]. - The Ministry of Finance issued a notice to enhance the credit enhancement role of governmental financing guarantee institutions to support market participants[126]. Capital Management and Investments - The Group's funds raised from the listing have been invested in support of financing development for SMEs[151]. - The Group's shareholding in Foshan Micro Credit increased from 30% to approximately 55.247% following the acquisition of shares, with approximately HK$28.79 million and HK$32.39 million used for this purpose[160]. - The Group's shareholding in Anhui Join-Share Financing Guarantee Co., Ltd. increased from 51% to approximately 63.05% after contributing approximately HK$48.58 million to its registered capital[159]. - The Group plans to adjust its internal group structure and change the use of unutilized proceeds from the listing, pending shareholder approval[85]. Employee and Corporate Governance - As of June 30, 2022, the total number of staff within the Group was 308, with 86.04% holding a bachelor's degree or above[190]. - The Group believes that employee quality is crucial for sustained development and profitability, offering performance-based salaries and annual training[190]. - The Group complied with pension scheme requirements for PRC-based employees during the six months ended June 30, 2022[190].
中盈盛达融资担保(01543) - 2022 - 中期财报