Quanzhou Huixin Micro credit : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTH ENDED 30 JUNE 2017

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Quanzhou Huixin Micro-credit Co., Ltd.*

泉 州 匯 鑫 小 額 貸 款 股 份 有 限 公 司

(Established in the People's Republic of China with limited liability)

(Stock Code: 1577)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTH ENDED 30 JUNE 2017

The board (the ''Board'') of directors (the ''Directors'') of Quanzhou Huixin Micro-credit Co., Ltd.* (the ''Company'', ''we'', or ''our'') is pleased to announce the unaudited interim results (the ''Interim Results'') of the Company for the six months ended 30 June 2017 (the ''Reporting Period''). The Board and the audit committee have reviewed and confirmed the Interim Results.

INTERIM RESULTS

Interim Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2017

(Amounts expressed in RMB unless otherwise stated)

Six months ended 30 June

Notes	2017 (unaudited)	2016 (unaudited)
Interest income	5	66,386,919	72,866,434
Interest expense	5	-	(3,262,457)
Interest income, net	66,386,919	69,603,977
Net charge of impairment allowance on loans receivable	(94,883)	(4,613,263)
Operating and administrative expenses	(9,146,089)	(11,030,586)
Foreign exchange loss, net	(2,337,518)	-
Other income and gains, net	6	1,341,814	225,161
PROFIT BEFORE TAX	7	56,150,243	54,185,289
Income tax expense	10	(14,128,364)	(13,680,929)
NET PROFIT AND TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	42,021,879	40,504,360

EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY

EQUITY HOLDERS OF THE COMPANY 12

Basic 0. 06 0.08

Diluted 0.06 0.08

Interim Statement of Financial Position 30 June 2017 (Amounts expressed in RMB unless otherwise stated)
Notes	30 June 2017 (unaudited)	31 December 2016 (audited)
ASSETS Cash and cash equivalents	13	98,947,196	114,409,337
Financial assets at fair value through profit or loss	14	31,200,000	26,000,000
Loans receivable	15	848,785,313	805,852,365
Property and equipment	16	586,313	744,456
Intangible assets	17	67,028	255,559
Deferred tax assets	18	1,392,197	1,459,976
Other assets	19	12,075,613	12,164,423
TOTAL ASSETS	993,053,660	960,886,116
LIABILITIES Income tax payable	9,068,774	17,096,122
Dividends payable	34,000,000	-
Other payables	20	2,942,495	4,769,482
TOTAL LIABILITIES	46,011,269	21,865,604
NET ASSETS	947,042,391	939,020,512
EQUITY Share capital	21	680,000,000	680,000,000
Reserves	22	116,182,836	116,182,836
Retained profits	150,859,555	142,837,676
TOTAL EQUITY	9 47,042,391	939,020,512

Interim Statement of Changes in Equity

For the six months ended 30 June 2017

(Amounts expressed in RMB unless otherwise stated)

Fo r t he six m onths e nded 3 0 J une 2017 (unaudited)

Re ser v es

Share capital

Capital reserve

Surplus reserve

General reserve

Retained

profits Total

Balance as at 1 January 2017 680,000,000 69,383,972 34,377,654 12,421,210 142,837,676 939,020,512

Net profit and total

comprehensive income

for the period - - - - 42,021,879 42,021,879

Distribution to shareholders

(Note 11) - - - - (34,000,000) ( 34,000,000)

Balance as at 30 June 2017 6 80,000,000 69 ,3 83,972 34,37 7,6 5 4 12,421,21 0 150,859,555 9 47,042,391

For t h e six m on ths e nded 3 0 J une 2 016 (u naudited)

Reserves

Share capital

Capital reserve

Surplus reserve

General reserve

Retained

profits Total

Balance as at 1 January 2016 500,000,000 - 25,825,758 10,938,300 92,353,522 629,117,580

Net profit and total

comprehensive income

for the period - - - - 40,504,360 40,504,360 Distribution to shareholders

(Note 11) - - - - (25,000,000) ( 25,000,000)

Balance as at 30 June 2016 5 00,000,000 - 25,82 5,7 5 8 10,938,30 0 107,857,882 6 44,621,940