Financial Performance - Net profit for the period was RMB 42,793,142, an increase of 67.5% compared to RMB 25,550,709 in the same period last year[54]. - Basic and diluted earnings per share attributable to ordinary shareholders of the parent company increased to RMB 0.05 from RMB 0.03[54]. - The pre-tax profit from operating activities for the six months ended June 30, 2023, was RMB 56,244,719, compared to RMB 34,347,784 for the same period last year, representing a year-over-year increase of 63.9%[31]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2023, was RMB 34,826,363, compared to RMB 22,653,848 for the same period in 2022, representing a year-over-year increase of approximately 54%[169]. - The income tax expense for the six months ended June 30, 2023, was RMB 13,451,577, compared to RMB 8,797,075 in the same period of 2022, indicating a higher tax burden due to increased profits[164]. - The company reported a total income from profit or loss of RMB 7,759,412 for the first half of 2023, compared to a loss of RMB 1,927,860 in the same period of 2022[189]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 1,320,014,171, a slight decrease from RMB 1,325,953,714 at the end of 2022[56]. - Total liabilities decreased to RMB 78,859,852 from RMB 86,635,537 at the end of 2022[56]. - The total liabilities as of June 30, 2023, were RMB 1,241,154,319, reflecting an increase from the previous period[177]. - The total value of loans receivable was RMB 955,943,524, an increase from RMB 858,116,038 as of December 31, 2022, representing an increase of approximately 11.4%[83]. - The total outstanding borrowings as of June 30, 2023, included guaranteed bank loans of RMB 30 million and guaranteed loans of RMB 9.65 million, down from RMB 38.92 million as of December 31, 2022[79]. - The company’s total equity as of June 30, 2023, was RMB 1,241.2 million, slightly up from RMB 1,239.3 million as of December 31, 2022[171]. Cash Flow - The net cash flow generated from operating activities was a negative RMB 12,720,936, a decrease from a positive RMB 50,411,217 in the previous year[31]. - The total cash and cash equivalents at the end of the period were RMB 81,471,488, down from RMB 131,077,717 at the beginning of the period, indicating a decrease of 37.9%[31]. - The company reported a net cash outflow from financing activities of RMB 37,110,248, compared to RMB 48,296,639 in the previous year, showing an improvement of 23.5%[31]. - The company’s total cash and bank balances from the sale of subsidiaries amounted to RMB 602 as of June 30, 2023[125]. - The company’s bank deposits as of June 30, 2023, were RMB 79,593,908, significantly lower than RMB 142,981,366 reported at the end of 2022, reflecting a decrease of approximately 44.5%[139]. Loans and Credit Risk - The total amount of loans issued reached RMB 955,654 thousand as of June 30, 2023, up from RMB 857,724 thousand at the end of 2022, indicating a growth in lending activity[199]. - The loan-to-equity ratio increased to 0.76 times as of June 30, 2023, compared to 0.69 times as of December 31, 2022, indicating a higher leverage position[171]. - The ratio of non-performing loans decreased to 8.9% as of June 30, 2023, down from 9.8% as of December 31, 2022[199]. - The net provision for loan impairment losses was RMB 13,883 thousand for the six months ended June 30, 2023, compared to RMB 8,163 thousand for the same period in 2022, reflecting a rise in expected credit losses[199]. - The company continues to focus on providing loans and financial services to small and micro enterprises, indicating a strategic commitment to this market segment[64]. Shareholder Information - The total number of issued shares as of June 30, 2023, is 680,000,000, including 180,000,000 H shares and 500,000,000 domestic shares[30]. - The company has declared dividends payable of RMB 34,000,000 as of June 30, 2023, which was not present in the previous period[118]. - The company approved a dividend of RMB 0.05 per ordinary share, totaling RMB 34 million, for the year ended December 31, 2022, which was distributed on August 15, 2023[166]. - The ownership structure indicates that major shareholders have significant control over the company, with several entities holding over 10%[25]. - The company has not issued any potential dilutive ordinary shares during the reporting period, hence no adjustments were made for diluted earnings per share[168]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has fully complied with it during the reporting period[39]. - The audit committee has reviewed the accounting principles and practices adopted by the group, with no disagreements noted by the auditors[45]. - The company maintains a high level of corporate governance to protect shareholder interests[39]. - The report highlights the importance of compliance with disclosure requirements under the Securities and Futures Ordinance[5]. Market Position and Strategy - The company aims to enhance its competitive strength and explore new development opportunities in the post-pandemic economic recovery[15]. - The company is the largest licensed micro-lending company in Fujian Province based on revenue for the year 2022, focusing on providing flexible short-term financing solutions to local entrepreneurs and SMEs[138]. - The company plans to continue expanding its market presence and investing in new technologies[54].
汇鑫小贷(01577) - 2023 - 中期财报