XINLI FINANCE(SH:600318)2021-04-23 16:00Financial Performance - The company reported a net profit attributable to shareholders of -7,999,996.98 RMB for 2020, a decrease of 124.78% compared to the previous year's profit of 32,280,676.58 RMB[5]. - Total operating revenue for 2020 was 492,197,076.87 RMB, representing a decline of 4.89% from 517,512,972.95 RMB in 2019[21]. - The net cash flow from operating activities decreased by 77.20%, amounting to 148,086,840.91 RMB compared to 649,443,174.79 RMB in 2019[21]. - The company plans not to distribute cash dividends or transfer capital reserves to share capital for the 2020 fiscal year, with retained earnings carried forward to the next year[5]. - The company’s revenue from core business activities decreased by 6.65% compared to the previous year[21]. - Basic earnings per share for 2020 was -0.02 CNY, a decrease of 133.33% compared to 0.06 CNY in 2019[23]. - The weighted average return on equity decreased by 3.41 percentage points to -0.64% in 2020 compared to 2.77% in 2019[23]. - In Q4 2020, the net profit attributable to shareholders was -37,140,052.34 CNY, a significant decline compared to Q3 2020's 21,700,697.74 CNY[25]. - The total operating income for Q4 2020 was 136,193,124.44 CNY, showing an increase compared to Q3 2020's 122,945,733.95 CNY[25]. Risk Management - The company faces various risks including market risk, credit risk, and liquidity risk, particularly in its traditional financial services such as financing guarantees and small loans[6]. - The company has taken measures to manage and control various operational risks, as detailed in the report[6]. - The company implemented a risk management system to monitor key projects and potential bad debts, ensuring no major risk events occurred during the reporting period[50]. - The main risks identified include market risk, credit risk, and liquidity risk, with specific focus on foreign exchange and interest rate fluctuations impacting financial instruments[74]. - The company recognizes the competitive risks in the internet financial cloud service market and aims to maintain its market position through product quality and service enhancement[75]. Subsidiaries and Business Segments - The company’s subsidiary, Dexin Guarantee, is a key player in the financing guarantee business, contributing to local economic development[29]. - Dexin Guarantee has diversified its services, including loan guarantees and litigation preservation guarantees, to support small and medium enterprises[29]. - The company’s subsidiary, Deshan Microfinance, focuses on small loans, with a registered capital of CNY 330 million, serving the "three rural issues" and small enterprises[31]. - The financing guarantee industry is facing increased competition and regulatory changes, impacting the operational environment[30]. - The financing leasing segment generated CNY 266 million in revenue, with a gross margin of 74.41%, reflecting a decrease of 1.67 percentage points compared to the previous year[56]. - The small loan segment's revenue was CNY 83.37 million, with a gross margin of 95.31%, down 0.74 percentage points year-on-year[56]. Corporate Governance and Compliance - The company has established a governance structure to ensure all shareholders can enjoy their rights fairly and transparently, with a commitment to accurate and timely information disclosure[123]. - The company has been recognized as a national high-tech enterprise, holding 30 core technologies and software copyrights in its field[41]. - The company has not made any adjustments to the profit distribution policy in the articles of association during the reporting period[79]. - The company has committed to not engage in competitive businesses during the tenure of key personnel and for three years post-employment[83]. - The company has established a robust internal control system to mitigate risks and ensure compliance with regulations[172]. Shareholder Information - The total number of ordinary shareholders increased to 57,911 by the end of the reporting period, up from 51,430 at the end of the previous month[135]. - The top shareholder, Anhui Xinli Technology Group Co., Ltd., holds 120,999,907 shares, representing 23.57% of the total shares, with 84,699,937 shares pledged[138]. - The company is actively managing its shareholder structure, with a focus on maintaining a balanced distribution of shares among major stakeholders[135]. - The company has a controlling shareholder, Anhui New Power Technology Group Co., Ltd., established on August 12, 2010[141]. - The actual controller is the Anhui Provincial Supply and Marketing Cooperative Union, which exercises investment responsibilities through Anhui Supply Group Co., Ltd.[143]. Legal Matters - The company has ongoing significant litigation matters, including a case involving a total of RMB 55.31 million in execution payments received[96]. - The company is currently involved in litigation amounting to 900.00 million RMB, with ongoing execution processes against multiple parties[100]. - The company has reported a total of 1,464.58 million RMB in litigation, with ongoing execution processes against multiple parties[99]. - The company has ongoing litigation involving 4,000.00 million RMB, with a current liability of 2,415.82 million RMB[101]. - The company has a total of 164 lawsuits related to securities false statements, with a total amount involved of approximately ¥127.46 million[105]. Employee and Human Resources - The total number of employees in the parent company and major subsidiaries is 246, with 38 in the parent company and 208 in subsidiaries[165]. - The company has established a comprehensive human resources management system, including training, compensation, and evaluation mechanisms[124]. - The company emphasizes performance-based compensation and efficiency in its salary policy[167]. - The company conducted over 600 training sessions during the reporting period, enhancing employee skills and engagement[166]. - The total pre-tax remuneration for the reporting period amounted to 186.85 million CNY[152]. Future Outlook and Strategy - The company aims to enhance its financial services by integrating internet, big data, and cloud computing technologies, focusing on innovation and self-research[41]. - The company anticipates ongoing economic recovery and reform deepening in 2021, driven by domestic and international dual circulation strategies[68]. - The company aims to enhance its core business by focusing on "finance + technology" strategy, targeting small and micro enterprises, and leveraging rural networks for growth[71]. - In 2021, the company plans to optimize internal controls and improve management levels, emphasizing precise investment and resource allocation for better efficiency[72]. - The company is exploring new paths for rural financial services as part of its strategic transformation following the cessation of new business launches in the financial segment[49].