XINLI FINANCE(SH:600318)2023-08-10 16:00Financial Performance - The company's operating revenue for the first half of 2023 was CNY 176,585,987.02, representing a year-on-year increase of 7.66% compared to CNY 164,026,021.23 in the same period last year[22]. - The net profit attributable to shareholders for the first half of 2023 was CNY 23,713,340.00, a significant increase of 357.81% from a loss of CNY 9,197,883.89 in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 22,309,704.05, up 647.22% from a loss of CNY 4,076,946.50 in the same period last year[22]. - The basic earnings per share for the first half of 2023 was CNY 0.0462, a 358.10% increase from a loss of CNY 0.0179 in the same period last year[23]. - The company achieved operating revenue of ¥176,585,987.02, representing a year-on-year growth of 7.66%[46]. - Net profit attributable to shareholders increased to ¥23,713,340.00, a significant year-on-year growth of 357.81%[46]. - The net profit attributable to shareholders after deducting non-recurring gains and losses reached ¥22,309,704.05, reflecting a remarkable growth of 647.22% year-on-year[46]. - The company reported a significant increase in revenue, achieving a total of 139.67 million RMB in a legal dispute, with a court ruling against the plaintiff's claims[88]. Cash Flow and Assets - The net cash flow from operating activities decreased by 67.46%, amounting to CNY 45,311,476.02 compared to CNY 139,254,816.65 in the previous year[22]. - The total assets at the end of the reporting period were CNY 4,282,951,945.61, reflecting a year-on-year increase of 5.81% from CNY 4,047,866,332.76[22]. - The net cash flow from operating activities for the first half of 2023 was RMB 45,311,476.02, a decrease of 67.5% compared to RMB 139,254,816.65 in the same period of 2022[130]. - The ending balance of cash and cash equivalents reached RMB 176,311,316.58, up from RMB 127,552,986.64 at the end of the first half of 2022, reflecting a growth of 38.1%[131]. - The company's cash and cash equivalents increased to RMB 250,679,702.39 from RMB 211,052,572.54, representing a rise of approximately 18.7%[116]. Business Development and Strategy - The company has increased its business development efforts, with the financing leasing segment's investment scale increasing year-on-year, contributing to overall revenue growth[24]. - The company aims to deepen its focus on emerging industries and sectors such as intelligent manufacturing, education, and environmental governance[31]. - The company plans to enhance its risk management and structural transformation in response to regulatory changes in the financing leasing sector[30]. - The company is exploring specialized and differentiated business operations to enhance market competitiveness[30]. - The company is committed to providing high-quality financial services to small and micro enterprises, aligning with national strategic directions[30]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[126]. Subsidiaries and Industry Position - The company’s subsidiary, DeRun Leasing, has a registered capital of 817 million RMB and has become one of the larger leasing companies in Anhui Province[31]. - The company’s subsidiary, Deshan Microfinance, was established in September 2009 with a registered capital of 330 million RMB, focusing on microloans for agriculture and small enterprises[34]. - The company’s subsidiary, Dehe Pawn, was founded in May 2012 with a registered capital of 220 million RMB, and has received multiple awards for its contributions to the local economy[36]. - The company’s subsidiary, Shoufu Tong, focuses on providing IT solutions for small and medium-sized banks, with a strong emphasis on digital transformation services[38]. Risk Management - The company has implemented strict credit risk management procedures, including due diligence and dynamic management of debtors[63]. - The liquidity risk is managed by monitoring cash needs and ensuring sufficient cash reserves and backup funding commitments[64]. - The company has implemented a comprehensive risk management system, enhancing risk prevention awareness and efficiency in project evaluation and review[49]. - The company aims to strengthen its risk management and improve asset operation quality to achieve sustainable growth[46]. Legal and Compliance - The company has ongoing litigation involving a total of 2.82 million RMB related to overdue rental payments, which has been settled[90]. - The company has reported a significant decline in comprehensive income compared to the previous year, indicating potential challenges in revenue generation[142]. - The company has not faced any major lawsuits or arbitration matters during the reporting period[88]. - The company has reported no violations regarding guarantees during the reporting period[87]. Shareholder and Governance - The company held its 2022 annual general meeting on April 13, 2023, where 15 proposals were approved, including the 2022 financial settlement report and the 2023 financial budget[69]. - The company did not propose any profit distribution or capital reserve transfer for the half-year period, with no dividends or stock bonuses planned[72]. - The company has undergone changes in its board and supervisory personnel, with new independent directors elected and some resignations noted[71]. - The company confirmed its ongoing commitment to maintaining shareholder interests through its long-term incentive mechanisms[74]. Environmental Responsibility - The company has actively supported green industry development by providing financing leasing services to clients in wastewater treatment and new energy sectors[79]. - The company has implemented green office practices and paperless operations to enhance its environmental responsibility[79]. - The company has not faced any significant environmental issues or penalties during the reporting period[79]. Financial Reporting and Accounting - The company’s financial statements were approved by the board on August 10, 2023, indicating a commitment to transparency and compliance with accounting standards[163]. - The company adheres to specific accounting policies for measuring expected credit losses and inventory valuation, ensuring accurate financial reporting[168]. - The company recognizes expected credit losses based on the risk of default weighted average for financial assets measured at amortized cost[200].