XINLI FINANCE(SH:600318)2021-08-13 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥212,159,605.70, a decrease of 8.97% compared to ¥233,058,218.48 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥1,025,512.29, down 86.22% from ¥7,439,357.62 in the previous year[21]. - The net cash flow from operating activities was ¥10,557,698.42, a significant decline of 95.20% from ¥219,918,377.03 in the same period last year[21]. - The total assets at the end of the reporting period were ¥5,240,533,195.55, a decrease of 3.00% from ¥5,402,673,719.66 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company increased by 13.70% to ¥1,419,677,130.06 from ¥1,248,631,639.98 at the end of the previous year[21]. - Basic earnings per share for the first half of 2021 were ¥0.0020, down 86.21% from ¥0.0145 in the same period last year[22]. - The weighted average return on net assets was 0.08%, a decrease of 0.51 percentage points from 0.59% in the previous year[22]. - Total revenue for the reporting period was CNY 212.16 million, a decrease of 8.97% year-on-year, while net profit fell by 30.43% to CNY 37.65 million[43]. - The company reported a significant decrease in other receivables from ¥57,283,591.13 in December 2020 to ¥10,133,433.59 in June 2021, a decline of approximately 82.3%[117]. - The company reported a net loss of CNY 59,332,999.99 for the first half of 2021, highlighting challenges in profitability[140]. Investment and Subsidiaries - The company’s subsidiary, Dexin Guarantee, has a registered capital of CNY 270 million and is a key player in the financing guarantee industry in Anhui Province[28]. - Dexin Small Loan, a subsidiary, was established with a registered capital of CNY 330 million and focuses on small loans, contributing significantly to local economic development[29]. - Investment income from subsidiaries decreased by ¥4.36 million compared to the previous year[23]. - The company’s financing guarantee services cover various sectors, including agriculture, transportation, and retail, addressing the financing difficulties of SMEs[28]. - The company has received multiple awards for its performance in the small loan sector, including recognition as an outstanding small loan company in Anhui Province[30]. - The company’s subsidiary, Derun Leasing, has a registered capital of 817 million RMB and aims to optimize asset structure and improve asset quality[36]. Cash Flow and Liquidity - The net cash flow from operating activities for the first half of 2021 was ¥10,557,698.42, a significant decrease of 95.2% compared to ¥219,918,377.03 in the first half of 2020[130]. - Cash inflow from financing activities was ¥519,868,929.14, down 28.9% from ¥731,033,169.83 in the first half of 2020[130]. - The ending balance of cash and cash equivalents was ¥206,947,148.54, slightly up from ¥204,617,675.98 at the end of the first half of 2020[131]. - The cash flow from operating activities showed a significant decline, indicating potential challenges in revenue generation and operational efficiency[130]. Regulatory and Market Environment - The financing guarantee industry has seen regulatory improvements, enhancing the legal status and operational standards of guarantee institutions[29]. - The regulatory environment for small loan companies has become more stringent, promoting a shift towards standardized operations in the industry[32]. - The company faces market, credit, and liquidity risks, with strategies in place to manage these risks effectively[54][55]. Research and Development - Research and development expenses increased by 40.01% to CNY 2.58 million, reflecting the company's commitment to innovation[47]. - The company reported a significant increase in research and development expenses, which rose to ¥2,578,299.68, up 40.0% from ¥1,841,483.33 in the previous year[121]. Shareholder and Capital Structure - The employee stock ownership plan holds 20,800,000 shares, accounting for 4.05% of the total share capital[66]. - The largest shareholder, Anhui Xinli Kechuang Group Co., Ltd., holds 120,999,907 shares, representing 23.57% of the total shares[105]. - The company has a total of 84,699,937 shares pledged by its largest shareholder[105]. - The company has not reported any changes in its share capital structure during the reporting period[101]. Legal and Compliance Matters - The company has ongoing litigation with Hefei Huhai Material Co., with a lawsuit amount of 718.17 CNY and a balance of 720.01 CNY[81]. - The company has reported no significant non-operating fund occupation by controlling shareholders or related parties during the reporting period[79]. - The company has a commitment to compensate for any losses caused by violations of shareholding commitments[76]. Social Responsibility and Environmental Impact - The company provides financing leasing services to clients in the sewage treatment and renewable energy sectors, supporting green industry development[68]. - The company actively promotes green and paperless office practices[68]. - The company has engaged in social responsibility initiatives, including purchasing agricultural products for consumption assistance and supporting disadvantaged employees[69]. - The company aims to provide financial empowerment for rural revitalization and support local agricultural development[69]. Performance Commitments and Compensation - The company committed to achieving a net profit of no less than RMB 23.6 million, RMB 30 million, and RMB 36 million for the years 2018, 2019, and 2020 respectively, with performance compensation obligations in place[72]. - The company has not completed its performance commitments for the years 2018 to 2020, achieving a completion rate of 98.92% against a cumulative commitment of CNY 89.6 million[107]. - The company is in the process of fulfilling performance compensation obligations due to the unmet commitments, which will affect the release of restricted shares[107]. Financial Reporting and Accounting Practices - The company’s financial statements are prepared based on the going concern principle, with no identified issues affecting its ability to continue operations[160]. - The company adheres to the accounting standards and policies set forth by the relevant authorities, ensuring accurate financial reporting[162]. - The company measures identifiable assets and liabilities acquired in a business combination at fair value on the acquisition date[167].