Financial Performance - The company reported total interest income of approximately RMB 51.9 million for the year ended December 31, 2022, a decrease of 14.3% compared to RMB 60.5 million in the previous year[5]. - The company experienced a net loss attributable to shareholders of approximately RMB 9.6 million, a significant decline of 311.0% from a profit of RMB 4.6 million in the prior year[5]. - Total assets as of December 31, 2022, were approximately RMB 897.8 million, a decrease of 0.7% from RMB 904.5 million in the previous year[10]. - The company’s net asset value as of December 31, 2022, was approximately RMB 880.2 million, down 0.8% from RMB 887.7 million a year earlier[10]. - The company recorded a net loss of approximately RMB 9.8 million for the year ended December 31, 2022, compared to a net profit of approximately RMB 4.6 million in 2021[33]. - The company recorded no net profit for the year ended December 31, 2022, resulting in no distribution to statutory surplus reserves and a zero allocation to general reserves[171]. Loan Portfolio and Customer Base - The company’s outstanding loan balance (before impairment losses) increased to approximately RMB 924.2 million, up 10.3% from RMB 837.9 million as of December 31, 2021[10]. - The number of customers served by the company decreased from 478 in 2021 to 388 in 2022[11]. - The total outstanding loans as of December 31, 2022, amounted to RMB 924.168 million, an increase from RMB 837.893 million in 2021[13]. - The loan portfolio classified by size shows that loans over RMB 2 million accounted for 74.7% of the total outstanding loans in 2022, compared to 47.8% in 2021[13]. - The company issued loans to 388 customers during the year, a decrease of approximately 18.8% compared to 478 customers in the previous year[163]. Interest and Expenses - Interest expenses for the year ended December 31, 2022, were RMB 108,023, a decrease from RMB 200,093 in 2021[21]. - The decline in interest income was primarily attributed to a decrease in actual interest rates and the ongoing impact of the COVID-19 pandemic on the local economy[10]. - The actual interest rate charged to customers decreased from 7.3% in 2021 to 6.2% in 2022[20]. - Administrative expenses rose by approximately 11.8% from RMB 11.1 million in 2021 to RMB 12.4 million in 2022, mainly due to increased employee costs[29]. - Sales and marketing expenses surged by approximately 771.0% from RMB 0.3 million in 2021 to RMB 2.8 million in 2022, attributed to higher promotional costs for business expansion[30]. Risk Management and Compliance - The company has implemented a risk management system to address credit risks and has adopted a loan classification method based on the "five-level classification principle"[16]. - The non-performing loan ratio increased to 6.7% in 2022 from 5.4% in 2021[18]. - The provision coverage ratio improved to 162.7% in 2022 from 105.9% in 2021[18]. - The company has established an effective risk management and internal control system to comply with corporate governance codes[133]. - No significant risks were identified in the risk assessment conducted for the year ending December 31, 2022[134]. Corporate Governance - The company emphasizes the importance of effective corporate governance to ensure transparency and accountability in operations[78]. - The board consists of 7 members, including 3 independent non-executive directors, meeting the listing rules requirements[90]. - The board will regularly evaluate its performance to maintain a balance of skills, experience, and diverse perspectives[85]. - The company has adopted a code of conduct for directors and supervisors regarding securities trading, ensuring compliance with regulations[80]. - The company has established mechanisms to ensure the board receives independent views and opinions, reviewed annually[90]. Leadership and Management - The company has been led by Mr. Bai Wanlin as the Executive Director and Chairman since its establishment in November 2008[55]. - Ms. Bai Li has been the CEO and General Manager since May 2013, overseeing overall business development and daily operations[57]. - The company has a strong leadership team with extensive experience in the garment manufacturing and sales industry[63]. - The company has established a succession plan to ensure a supply of candidates for key positions when senior leaders leave or retire[117]. Shareholder Relations and Dividends - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[172]. - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future growth, allowing for the declaration of interim, final, and special dividends as deemed appropriate[159]. - The board of directors attended the annual general meeting, providing an opportunity to understand and respond to shareholder opinions[162]. Employee and Workplace Policies - The company maintains a zero-tolerance policy towards workplace harassment or abuse[120]. - The company is committed to providing equal opportunities in employment and ensuring no discrimination occurs in the workplace[120]. - Senior management compensation is determined based on experience, responsibilities, and market conditions, with annual reviews of comparable companies' compensation levels[129]. Financial Reporting and Audit - The board is responsible for preparing the financial statements in accordance with statutory requirements and applicable accounting standards[132]. - The audit committee reviewed the company's full-year performance for the year ending December 31, 2021, and the interim results for the six months ending June 30, 2022[104]. - As of December 31, 2022, the total fees paid/owed to the company's auditor amounted to RMB 1,718,000, with RMB 1,697,000 for audit services and RMB 21,000 for non-audit services[149].
泰和小贷(01915) - 2022 - 年度财报