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Join-Share Announces 2016 Interim Results

Date: 2016-08-25
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  (Hong Kong, 25 August 2016)Guangdong Join-Share Financing Guarantee Investment Co., Ltd. (the “Company”; Stock Code: 1543 HK)is pleased to release the unaudited interim results for the six months ended 30 June 2016 of the Company.

ØDuring the six months ended 30 June 2016, net guarantee fee income was approximately RMB63.8 million, including a decrease in financing guaranteefee income of approximately RMB10.7 million or approximately 15.3%; and an increase in non-financingfee income of approximately RMB4.9 million or approximately 235.7%.

ØSME net interest income was approximately RMB44.7 million, which decreased by approximately RMB14.7 million or 24.7% over the same period of the previous year;

ØProfit before taxation was approximately RMB83.3 million, representing a decline of 14.7% over the year earlier

ØNet profit for the six months ended 30 June 2016 decreased by approximately 14.8% to approximately RMB61.7 million.

ØEarnings per share was RMB0.05.

Net Guarantee Fee Income

During the six months ended 30 June 2016(the “Reporting Period”, or the “Period”), the Company’s net guarantee fee income was approximately RMB63.8 million, whichdecreased by approximately RMB4.1 million from approximately RMB67.9 million for the six months ended 30 June 2015, representing a decline of approximately 6.0%. Financing guaranteefee income during the Period decreased approximately RMB10.7 million or approximately 15.3%, but an increase in non-financingfee income of approximately RMB4.9 million or approximately 235.7% has partially offset the decrease infinancing guarantee fee income.

Net Interest Income

During the Reporting Period, SME net interest income was approximately RMB44.7 million, whichdecreased by approximately RMB14.7 million from approximately RMB59.4 million for the six months ended 30 June2015, representing a decline of approximately 24.7%. This was due to the continued decrease of the People’s Bank ofChina benchmark interest rate in the year ended 31 December 2015. The interest income from entrusted loan business for the Period decreased byapproximately 13.0% as compared to that for the same period in 2015, which was primarily attributable to the decreasein the annualized average interest fee rate from approximately 17.6% to 13.9%. The interest income from micro-lending business for the Reporting Period decreased byapproximately 22.8% as compared to that for the same period in 2015, which was primarily attributable to the decreasein the annualized average interest fee rate for the Company’s micro-lending business from approximately 19.3% to approximately14.3%.

 Service Fee from Consulting Services

 Service fee from consulting services decreased by approximately RMB1.9 million, or approximately 10.8%, toapproximately RMB15.7 million for the six months ended 30 June 2016, primarily due to the tightened credit policies of the commercial banks in China, whichreduced the financings that our customers could obtain.

Other Revenue

Other revenue increased by approximately RMB6.9 million, or approximately 84.1%, to approximately RMB15.1million for the six months ended 30 June 2016 from approximately RMB8.2 million for the six months ended 30June 2015, primarily due to the investment income generated from disposal of available-for-sale financial assets ofapproximately RMB9.6 million and the positive effect of USD to RMB exchange rate changes during first half of 2016.

Profit before Taxation

Profit before taxation decreased by approximately RMB14.3 million from approximatelyRMB97.6 million for the six months ended 30 June 2015 to approximately RMB83.3 million for the six months ended 30June 2016, representing a decline of 14.7%.

As a result of the foregoing, the Company’s profit for the six months ended 30 June 2016 decreased by approximately RMB10.7million, or approximately 14.8%, to approximately RMB61.7 million from approximately RMB72.4 million for the sixmonths ended 2015.

In the second half of 2016, In view of “Business Startups and Creativity for the Public(大眾創業、萬眾創新)” and under the development trend ofindustrial transformation and upgrade, the financing demand for SMEs in China remains huge. With the implementationof structural reforms of supply side and the increasing attention on the private economy from governments at central,provincial and municipal levels, it’s expected that more policies will be promulgated to support SMEs and financialinstitutions (including financial guarantee and micro-lending) in the foreseeable future. The Company also expects that the overallimprovement of the regulatory environment will enable institutions in the industry that it operates to play a bigger role inhelping SMEs with financing needs. Thus, the Company will steadfastly implement its strategic plan. With a strategic goal ofbecoming a leading Chinese financing service provider with a systematic platform for the SMEs, the Company is committedto solve the difficulties encountered by the SMEs in obtaining financing and aim to achieve common growth amongshareholders, local governments, customers, cooperative institutions and other industry players.

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