XINLI FINANCE(SH:600318)2022-03-25 16:00Financial Performance - The company reported a net profit attributable to shareholders of -300,122,625.26 yuan for the year 2021, indicating a loss[6]. - The company's operating revenue for 2021 was CNY 395.40 million, a decrease of 19.67% compared to CNY 492.20 million in 2020[22]. - The net profit attributable to shareholders was a loss of CNY 300.12 million, significantly down from a loss of CNY 8.00 million in the previous year[22]. - The company's total assets decreased by 19.84% to CNY 4.33 billion from CNY 5.40 billion in 2020[22]. - The company's net assets attributable to shareholders at the end of 2021 were CNY 1.14 billion, down 8.57% from CNY 1.25 billion at the end of 2020[22]. - Total revenue for the reporting period was 395.4 million RMB, a decrease of 19.67% year-on-year, while net profit attributable to shareholders was -300 million RMB, a decline of 3,651.53%[50]. - The company reported a total revenue of 1.2 billion CNY for the fiscal year 2021, representing a year-over-year increase of 15%[102]. - The company reported a net profit margin of 12%, up from 10% in the previous year, indicating improved operational efficiency[102]. Dividend and Profit Distribution - The board proposed no cash dividend distribution for 2021 due to the negative net profit, with remaining undistributed profits carried forward to the next year[6]. - The company plans not to distribute cash dividends or transfer capital reserves to share capital for the 2021 fiscal year[129]. - The company has not proposed a cash profit distribution plan despite having positive distributable profits[131]. Asset Management and Restructuring - The company announced a major asset restructuring plan on November 25, 2021, involving asset swaps and fundraising through share issuance[9]. - The company plans to acquire 75.6234% of Bick Power through a major asset swap and issuance of shares, while divesting several subsidiaries[72]. - The company is currently undergoing a major asset restructuring, with related audits and evaluations still in progress[84]. - The company is planning a major asset restructuring, including the acquisition of 75.6234% equity in Bick Power, which requires approval from the Shanghai Stock Exchange and the China Securities Regulatory Commission, indicating uncertainty in the process[88]. Risk Management - The company operates in various sectors including financing guarantees, microloans, leasing, and software services, facing risks such as market, credit, and liquidity risks[8]. - The company has taken measures to manage and control various operational risks, including competition and technology development risks in the software and information technology services sector[8]. - The company’s future development strategy includes addressing potential risks associated with its business operations[9]. - The company is focused on risk management reforms, enhancing project due diligence and audit quality to improve overall risk management efficiency[35]. - The company emphasizes the importance of dynamic management of debtors, conducting regular follow-ups to mitigate credit risk, which has significantly reduced the credit risk exposure[86]. - The financial industry is expected to face challenges such as market risk, credit risk, and liquidity risk, which the company is actively managing[85]. Subsidiaries and Business Segments - The company’s subsidiary, Dexin Guarantee, has diversified its financing guarantee services, contributing to local economic development and addressing financing difficulties for SMEs[42]. - Dexin Small Loan, a subsidiary, focuses on small loans and has been recognized as a benchmark enterprise in Anhui province, emphasizing service to agriculture and small enterprises[43]. - The company’s pawn subsidiary, Dehe Pawn, has been recognized for its integrity and contribution to the local economy, maintaining a strong market position in Anhui province[44]. - De Run Leasing, another subsidiary, has a registered capital of 817 million RMB and focuses on providing comprehensive financial services, primarily in the healthcare, education, and renewable energy sectors[45]. Employee and Management - The total number of employees in the company increased by 3.56% year-on-year, reaching 378 by the end of 2021[39]. - The total number of employees in the parent company and major subsidiaries is 244, with 44 in the parent company and 200 in subsidiaries[125]. - The company has 49 technical personnel and 118 business personnel among its employees[125]. - The company aims to establish a long-term incentive mechanism to attract and retain talent, aligning the interests of shareholders and management[132]. - The performance-based compensation for senior management is determined by company performance and individual contributions, following a structured evaluation process[134]. Compliance and Governance - The company’s financial report has been audited and received a standard unqualified opinion from the auditing firm[5]. - The company has held 3 shareholder meetings during the reporting period, ensuring compliance with legal requirements and protecting the rights of all shareholders, especially minority shareholders[91]. - The board of directors consists of 5 members, including 2 independent directors, ensuring compliance with regulations regarding board composition and decision-making processes[92]. - The company has implemented measures to enhance investor relations and ensure transparent information disclosure, maintaining compliance with relevant laws and regulations[93]. - The company has revised its insider information management system to enhance confidentiality and limit the number of insiders[94]. Legal and Litigation Matters - The company has ongoing significant litigation, with a total of RMB 86,912,240.74 received from various cases as of the reporting period[156]. - The company has also received RMB 16,726,400.00 from financing lease contract disputes as of the reporting period[156]. - The company has a total of 28 other lawsuits involving amounts below RMB 5 million, with a total of RMB 4,562.91 million in claims[159]. - The company is actively managing its litigation risks and has taken steps to address potential financial impacts from ongoing legal matters[157]. - The company has not faced any delisting risks or bankruptcy restructuring matters during the reporting period[155]. Strategic Initiatives - The company implemented a "finance + technology" strategy, focusing on stable operations and optimizing risk control to enhance future business efficiency[32]. - The company is focused on deepening its integration of finance and industry to support rural revitalization and the comprehensive reform of supply and marketing cooperatives[49]. - The company is committed to optimizing its risk control system and enhancing service quality to ensure sustainable development in the financial sector[42]. - The company is committed to sustainable development and actively engages in community service and volunteer activities[142]. Technology and Innovation - The company is actively pursuing digital transformation for small banks through technology integration and service upgrades[33]. - The company is focused on enhancing its product development and technological innovation capabilities to maintain a competitive edge in the rapidly evolving internet financial cloud service market[87]. - The company is investing 100 million CNY in R&D for new technologies aimed at enhancing user experience and operational efficiency[102]. Market and Expansion - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 300 million CNY allocated for potential deals in 2022[102]. - Market expansion plans include entering two new provinces, targeting a 25% increase in market share within these regions by 2023[102]. - The company plans to enhance its digital marketing strategies, aiming for a 30% increase in online customer engagement by the end of 2022[102].