XINLI FINANCE(SH:600318)2022-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥164,026,021.23, a decrease of 22.69% compared to ¥212,159,605.70 in the same period last year[23]. - The net profit attributable to shareholders for the first half of 2022 was -¥9,197,883.89, a significant decline of 996.91% from ¥1,025,512.29 in the previous year[23]. - The basic earnings per share for the first half of 2022 was -¥0.0179, a decrease of 995.00% compared to ¥0.0020 in the same period last year[24]. - The net profit after deducting non-recurring gains and losses was -¥4,076,946.50, a decline of 287.60% from ¥2,173,183.23 in the same period last year[23]. - The company reported a significant increase in accounts receivable by 87.85% to ¥28,424,649.18, attributed to the expansion of supply chain business[62]. - The company recorded a net cash outflow from financing activities of ¥167,283,363.39, a 121.76% increase compared to the previous year[60]. - The company reported a net loss of ¥7,664,607.66, a decrease of 599.88% compared to a profit of ¥1,533,276.23 in the previous year[62]. - The company reported a comprehensive income of 89,315,753.38 CNY for the current period[153]. Cash Flow - The net cash flow from operating activities reached ¥139,254,816.65, an increase of 1,218.99% compared to ¥10,557,698.42 in the same period last year[23]. - Total cash inflow from operating activities amounted to RMB 249,536,846.44, while cash outflow was RMB 110,282,029.79, resulting in a net cash flow from operating activities[140]. - The cash inflow from investment activities was RMB 588,869.99, while cash outflow was RMB 267,212.49, resulting in a net cash flow from investment activities of RMB 321,657.50[141]. - The company’s cash flow from financing activities showed a substantial decrease in net cash flow, dropping from RMB -75,435,580.22 in the first half of 2021 to RMB -167,283,363.39 in the first half of 2022[141]. Assets and Liabilities - The total assets at the end of the reporting period were ¥4,365,596,280.42, reflecting a slight increase of 0.80% from ¥4,330,934,164.55 at the end of the previous year[23]. - The total liabilities were CNY 2,216,490,295.97, slightly up from CNY 2,205,503,784.44 at the start of the year[128]. - The company's equity attributable to shareholders decreased to CNY 1,132,854,558.90 from CNY 1,141,656,473.42 at the beginning of the year[128]. - The total owner's equity at the end of the reporting period was CNY 2,149,105,984.45, reflecting an increase from the previous period[147]. Subsidiaries and Investments - The company’s subsidiary, De Xin Guarantee, operates in the financing guarantee sector, contributing to local economic development[32]. - The company’s subsidiary, De Shan Small Loan, focuses on small loans and has been recognized as a benchmark enterprise in the province[33]. - The company’s subsidiary, Dexin Guarantee, reported total assets of CNY 380.88 million and net assets of CNY 328.78 million, achieving a net profit of CNY 4.21 million during the reporting period[42]. - The company’s subsidiary, Derun Leasing, invested CNY 580 million in projects, generating operating income of CNY 92.61 million and a net profit of CNY 35.11 million[46]. Risk Management - The company faced challenges due to stricter financial regulations, reduced investment income, and costs associated with employee stock ownership plans[24]. - The company has implemented various measures to manage and control operational risks, including market, credit, and liquidity risks[10]. - The company faces market risks, credit risks, and liquidity risks across its financing guarantee, micro-loan, pawn, and leasing businesses[69]. - The company has implemented strict credit risk management procedures, including due diligence and dynamic management of debtors, to mitigate potential losses[70]. Employee and Stock Ownership - The employee stock ownership plan holds 20,800,000 shares, accounting for 4.06% of the total share capital, with a transfer price of 7.27 yuan per share[80]. - As of June 30, 2022, the employee stock ownership plan had 138 participants, a decrease of 5 due to employee departures[82]. - The first batch of unlocked shares from the employee stock ownership plan, totaling 10,400,000 shares, was fully sold by June 14, 2022[80]. Legal Matters - The company is involved in a significant lawsuit with a subsidiary, with the amount in dispute being approximately 139.67 million RMB[91]. - The company reported a total of 1,870.39 million in overdue rental payments, with ongoing litigation in the Hefei Shushan District People's Court[96]. - The company has successfully mediated or won judgments in multiple cases, including amounts of 1,000.00 million RMB and 950.00 million RMB, which are currently in execution[98]. Corporate Governance - The company appointed Dong Fei as the new board secretary and non-independent director, while Jin Yan resigned from her position[76]. - The company has no plans for profit distribution or capital reserve transfer for the half-year period, with no dividends or stock bonuses proposed[78]. - The financial statements were approved by the board of directors on August 24, 2022, indicating a commitment to transparency and compliance with accounting standards[165]. Environmental and Social Responsibility - The company supports green industry development by providing financing leasing services to clients in wastewater treatment and new energy sectors[84]. - The company actively supported community pandemic prevention efforts, ensuring smooth production and living conditions for residents during the complex pandemic situation[85].