XINLI FINANCE(SH:600318)2023-03-23 16:00Financial Performance - The company reported a net profit attributable to shareholders of -138,518,175.97 RMB for the year 2022, with an undistributed profit balance of -138,776,884.28 RMB as of December 31, 2022[7]. - In 2022, the company's operating revenue decreased by 20.83% to CNY 313,023,523.55 compared to CNY 395,402,338.76 in 2021[24]. - The net profit attributable to shareholders was a loss of CNY 138,518,175.97, an improvement of 53.85% from a loss of CNY 300,122,625.26 in 2021[24]. - The basic earnings per share for 2022 was -0.27 CNY, showing a 53.45% improvement from -0.58 CNY in 2021[24]. - The company recorded a net cash flow from operating activities of CNY 325,461,529.67, an increase of 8.92% from CNY 298,820,610.42 in 2021[24]. - The total assets at the end of 2022 were CNY 4,047,866,332.76, down 6.54% from CNY 4,330,934,164.55 at the end of 2021[24]. - The company recognized goodwill impairment of CNY 107,653,800.00 during the reporting period[25]. - The company incurred a fair value loss of CNY 34,792,747.32 related to trading financial assets[29]. - The weighted average return on equity improved to -12.87% in 2022 from -27.05% in 2021, an increase of 14.18 percentage points[24]. Dividend and Profit Distribution - The board of directors proposed no cash dividend distribution or capital reserve transfer to increase share capital for the year 2022 due to the negative net profit[7]. - The company will not distribute cash dividends or convert capital reserves into share capital for the 2022 fiscal year, as approved by the board and supervisory committee[124]. Operational Risks and Management - The company operates in various sectors including financing guarantees, microloans, financing leasing, pawn services, and software and information technology services, facing risks such as market, credit, and liquidity risks[11]. - The company has implemented measures to manage and control various operational risks associated with its business activities[11]. - The company is focused on maintaining stable operations and long-term interests of all shareholders in light of its current operational situation and future development plans[7]. - The company is committed to risk management reforms, enhancing project due diligence and review quality[36]. - The company is adjusting its client structure and strictly managing client access to mitigate potential risks[35]. Subsidiaries and Business Segments - The company’s subsidiary, Dexin Guarantee, has a registered capital of RMB 270 million and is a key player in the financing guarantee industry, contributing to local economic development[48]. - Dexin Guarantee reported total assets of RMB 2.176 billion and net assets of RMB 1.198 billion, achieving an operating income of RMB 176 million and a net profit of RMB 58.3847 million during the reporting period[51]. - The company’s small loan subsidiary, Deshan Small Loan, reported total assets of RMB 711 million and net assets of RMB 671 million, with a net profit of RMB 25.151 million during the reporting period[55]. - The company’s subsidiary, Handu Tong, achieved total assets of RMB 100.4224 million and net assets of RMB 84.5068 million, with a net profit of RMB 13.1033 million in 2022[53]. - Dexin Guarantee's financing leasing subsidiary, Derun Leasing, is actively investing in education, new materials, and new energy projects, aligning with market demands[51]. Governance and Compliance - The company has not faced significant governance discrepancies with regulatory requirements, maintaining compliance with relevant laws[99]. - The company has implemented measures to ensure the independence of its operations, with no significant changes in competitive conditions affecting its business[99]. - The company adhered to strict information disclosure regulations, ensuring transparency and fairness in its communications with investors[99]. - The company emphasizes the integration of party leadership into its business strategy to enhance governance and operational effectiveness[88]. - The company has conducted an independent audit of its internal control effectiveness, receiving a standard unqualified opinion[133]. Future Plans and Strategies - The company’s future plans and development strategies are subject to uncertainties and do not constitute a substantive commitment to investors[8]. - The company is focusing on the integration of supply chain management services to improve operational scale and refine its business[36]. - The company is actively exploring the deep integration of technology with the supply and marketing system to support rural revitalization[34]. - The company aims to strengthen its risk management and recovery processes to mitigate financial risks effectively[56]. - The company is committed to enhancing its financial services for small and micro enterprises, aligning with inclusive finance policies[57]. Legal Matters and Litigation - The company is currently involved in multiple legal proceedings due to overdue rental payments, with claims amounting to 1,287.52 million pending in court[157]. - The company has ongoing litigation with a total claim amount of 1,000 million RMB against Anhui Huipu Information Technology Co., Ltd., which has been won and is currently in the execution process[158]. - The company has successfully resolved litigation involving RMB 2,282.60 million, with enforcement currently underway[156]. - The company has reported ongoing legal actions with claims totaling 1,400.00 million, reflecting its commitment to enforcing contractual agreements[157]. Employee and Shareholder Relations - The total number of employees in the parent company and major subsidiaries is 229, with 43 technical personnel and 26 financial personnel[121][122]. - The company has established a long-term incentive mechanism to attract and retain talent, enhancing investor confidence[126]. - The company has an employee stock ownership plan holding 20,800,000 shares, accounting for 4.06% of the total share capital as of the report date[128]. - The company has not reported any dissenting opinions from board members regarding company matters, indicating a unified leadership approach[116]. Market and Competitive Landscape - The financial environment remains challenging, with increased market, credit, and liquidity risks identified as potential threats to the company's operations[89]. - The company operates in a competitive internet financial cloud service market, which may intensify in the future[91]. - The company is focusing on market expansion strategies, particularly in the financial leasing sector, to enhance its competitive edge[1]. - The company is actively pursuing mergers and acquisitions to strengthen its market position and diversify its portfolio[1].