Core Insights - China Cinda Asset Management Co., Ltd. reported a total revenue of 403.73 billion yuan from its non-performing asset management segment, accounting for 55.3% of total revenue for the year 2024 [1] Financial Performance - Total assets reached 1.64 trillion yuan, a year-on-year increase of 2.8% [2] - Shareholder equity amounted to 194.18 billion yuan, up 0.7% year-on-year [2] - Net profit attributable to shareholders was 3.036 billion yuan [2] - Core Tier 1 capital adequacy ratio, Tier 1 capital adequacy ratio, and total capital adequacy ratio were 11.07%, 15.63%, and 16.75%, respectively, meeting regulatory requirements [2] Business Segment Performance - The non-performing asset management segment had total assets of 915.22 billion yuan, contributing 55.8% to total assets and 55.3% to total revenue [2] - The net amount of acquired non-performing assets increased by 7.01% to 266.36 billion yuan [2] - Disposal income from acquired non-performing assets rose by 6.16% to 8.606 billion yuan [2] - Other non-performing asset business scale reached 211.12 billion yuan, with revenue increasing by 10.75% and 113.09%, respectively [2] Financial Services Segment - The financial services segment had total assets of 727.76 billion yuan, with total revenue of 33.186 billion yuan, reflecting growth of 4.56% and 2.45% respectively [3] - Nanchang Bank reported total revenue of 23.228 billion yuan and a pre-tax profit of 3.579 billion yuan, increasing by 5.71% and 10.79% respectively [3] - Xinda Securities' total assets grew by 37.22% to 106.90 billion yuan [3] - Jingu Trust's total assets reached 14.674 billion yuan, with a pre-tax profit of 743 million yuan, marking increases of 60.43% and 62.58% respectively [3] Strategic Initiatives - China Cinda has actively adapted to new market conditions for risk resolution, focusing on high-quality development of non-performing asset management [4] - The company expanded its acquisition channels, successfully acquiring over 220 billion yuan in bank non-performing assets [4] - The company also ventured into overseas markets, acquiring over 7.6 billion yuan in foreign non-performing assets [4] - In asset disposal, the company maintained over 50 billion yuan in asset recovery for seven consecutive years [5] Risk Mitigation Efforts - The company supported small financial institutions by acquiring over 140 billion yuan in non-performing assets [5] - It participated in risk resolution in the real estate sector, investing nearly 17 billion yuan to support housing delivery and urban renewal projects [5] - The company provided 4.5 billion yuan to help local governments manage debt risks [6]

中国信达：2024年不良资产主业优势持续强化 实现 归属股东净利润30.36亿元 新华财经北京3月25日电（记者董道勇）25日，中国信达资产管理股份有限公司（股票代码HK： 1359）发布的2024年度业绩公告显示，2024年公司不良资产主业优势持续强化，综合金融服务质效不断 提升，总体经营符合预期。 此外，中国信达聚焦中国式现代化，加大对重大战略、重点领域和薄弱环节的支持力度，不断优化 金融服务供给，助力实体经济高质量发展。2024年，持续发力破产重整业务领域，稳健开展破产企业债 权反向收购、共益债投资，参与7个项目破产重整，涉及金额17亿元，助力新华联、正邦科技、西宁特 钢等一批企业通过破产重整获得新生；服务科技型企业跨链条、跨周期发展，年内落地项目31个，投资 金额约100亿元，为新质生产力发展注入强大金融动能；完成DeepSeek本地化部署，持续赋能一线、赋 能客户…… 2025年是中国信达加入中投公司、踏上改革转型新征程的重要一年。中国信达将统筹高质量发展和 高水平安全，全面加强精细化管理，坚决守牢风险合规底线，不断夯实稳健经营基础，持续巩固差异化 竞争优势，为加快推进金融强国建设作出应有贡献。 （ ...

中国信达2024年净利30.364亿元，下降47.8% 截至2024年末，中国信达的资产总额1.6万亿元，同比增长2.8%，其中母公司资产规模近7500亿元，同比增长1.9%。 不良资产经营业务是中国信达的核心业务和收入主要来源，2024年不良资产经营业务收入总额为403.727亿元，占2024年收入总额的55.3%，2024年 末总资产的55.8%，净资产的49.9%。中国信达在年报中表示，2024年，受个别子公司经营业绩下滑影响，不良资产经营业务税前利润下降。 中国信达表示，2024年聚焦不良资产市场，把握市场机遇，持续巩固主业优势，继续保持收购经营类不良债权资产业务经营力度。2024年以公允价 值计量且其变动计入当期损益的金融资产中不良债权的新增收购为470.996亿元，处置规模478.543亿元。 中国信达在年报中表示，2024年公司坚守金融不良资产主阵地，收购银行不良资产规模超2200亿元，保持行业领先水平；不良资产处置效益保持良 好势头，处置回现连续7年超500亿元；各级资本充足率保持合理安全。 金融服务业务是中国信达业务的重要组成部分，作为重要的交叉销售推动板块，受益于协同运营管理策略。金融服务 ...

Core Insights - China Cinda Asset Management Co., Ltd. reported a total asset scale of 1.64 trillion yuan by the end of 2024, representing a year-on-year growth of 2.8% [1] - The company achieved a net profit attributable to shareholders of 3.036 billion yuan for the year [1] - The core tier one capital adequacy ratio, tier one capital adequacy ratio, and total capital adequacy ratio were 11.07%, 15.63%, and 16.75%, respectively, meeting regulatory requirements [1] Asset Acquisition - The company acquired over 220 billion yuan in bank non-performing assets, maintaining industry leadership [2] - It expanded asset acquisition types, including new investments in ABS and income rights projects [2] - The company acquired over 76 billion yuan in overseas non-performing assets through its subsidiaries in Hong Kong and the Shanghai Free Trade Zone [2] Risk Management and Support - The company acquired over 140 billion yuan in non-performing assets from small and medium-sized banks, providing tailored risk resolution plans [2] - It participated in risk resolution in the real estate sector, contributing nearly 17 billion yuan to projects aimed at ensuring housing delivery [2] - The company also engaged in local debt risk resolution, investing 4.5 billion yuan to help local governments manage debt [2] Operational Efficiency - The company emphasized high-quality development and risk compliance, enhancing its risk management framework [3] - It established a dual-line post-investment management mechanism for major projects to improve risk monitoring [3] - The company launched innovative financing solutions, including the issuance of the first AMC market-making ABS and the largest advanced manufacturing ABS in the market [3]

Financial Performance - The company reported a total revenue of approximately 73.04 billion yuan for 2024, a decrease of 4.11% year-on-year [1] - The net profit attributable to shareholders was 3.0364 billion yuan, down 47.84% compared to the previous year [1] - Earnings per share were 0.04 yuan, with a proposed cash dividend of 0.2387 yuan for every 10 shares [1] - As of the end of 2024, the total assets of the group reached 1.6 trillion yuan, an increase of 2.8% year-on-year [1] Asset Management and Risk Mitigation - The company acquired over 220 billion yuan in non-performing assets from banks, maintaining a leading position in the industry [1] - The effectiveness of non-performing asset disposal remained strong, with over 50 billion yuan recovered for seven consecutive years [1] - The company actively supported the reform and risk mitigation of small and medium-sized financial institutions, acquiring over 140 billion yuan in non-performing assets from small banks [2] Support for Real Estate and Local Debt - The company facilitated risk resolution in the real estate sector, launching 33 projects and investing nearly 17 billion yuan, resulting in the delivery of over 20,000 housing units [2] - It also invested 4.5 billion yuan in local debt projects to help local governments raise resources for debt repayment [2] Investment in the Real Economy - The company invested over 200 billion yuan in supporting the real economy, with 31 projects in technology finance amounting to approximately 10 billion yuan [3] - A green finance fund of 5 billion yuan was established to focus on renewable energy and low-carbon development [3] - The company invested over 8.1 billion yuan in inclusive finance, enhancing service quality and efficiency [3] Support for State-Owned and Private Enterprises - The company assisted in the reform of state-owned enterprises by managing the disposal of non-core assets and supporting the healthy development of the private economy, with new cooperation exceeding 16 billion yuan [4] - It participated in seven bankruptcy restructuring projects, involving 1.7 billion yuan [4] - The company managed over 700 billion yuan in third-party assets, a 70% increase year-on-year [4] Risk Management and Financing Innovation - The company improved its comprehensive risk management system and established a dual-line post-investment management mechanism for major projects [4] - It maintained liquidity safety and continued to innovate in financing, issuing the first market-making ABS for AMC and the largest scale advanced manufacturing ABS [4]

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2024, with total revenue reaching RMB 10 billion, representing a 15% year-over-year growth[3]. - The net profit for the year was RMB 2 billion, reflecting a 20% increase compared to the previous year[3]. - Total revenue for 2024 reached RMB 73,039.9 million, a decrease of 4.4% compared to RMB 76,167.8 million in 2023[15]. - The company's profit for the year ended December 31, 2024, was RMB 3,508.2 million, a decrease of 49.9% compared to RMB 6,993.5 million in 2023[16]. - The average return on equity for 2024 was 0.92%, down from 2.70% in 2023[18]. - The cost-to-income ratio increased to 24.85% in 2024, compared to 22.96% in 2023[18]. - The company reported a net profit attributable to shareholders of 3,036.4 million yuan in 2024, a decrease of 47.8%[41]. - The pre-tax profit decreased by 51.3% to RMB 3,990.3 million from RMB 8,186.3 million[43]. Revenue Sources - Interest income for 2024 was RMB 32,961.4 million, slightly down from RMB 33,061.5 million in 2023[15]. - Commission and fee income increased by 0.4% to RMB 4,921.2 million in 2024 from RMB 4,903.4 million in 2023, driven by a significant rise in trust business income, which surged 93.5% to RMB 1,041.8 million[57]. - The revenue from the distressed asset management business accounted for 55.3% of total revenue in 2024, down from 58.3% in 2023[110]. - The income from distressed debt assets in 2024 was RMB 11,025.0 million, a significant decrease from RMB 16,018.4 million in 2023, representing a decline of approximately 31.2%[112]. Asset Management - The total assets under management have grown to RMB 50 billion, marking a 12% increase from the previous year[3]. - The total assets as of December 31, 2024, amounted to RMB 1,638,960.3 million, an increase from RMB 1,594,357.4 million in 2023[17]. - The total liabilities as of December 31, 2024, were RMB 1,415,804.8 million, an increase from RMB 1,377,201.3 million in 2023[17]. - The total equity increased by 2.8% from RMB 217,156.2 million in 2023 to RMB 223,155.4 million in 2024[77]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 5% market share within the next two years[3]. - A strategic acquisition of a fintech startup is in progress, expected to enhance the company's service offerings and customer engagement[3]. - The company has engaged in new cooperation with top 500 private enterprises, adding over 16 billion yuan in new partnerships, a year-on-year increase of 43%[35]. - The company has been actively involved in the reform of small and medium financial institutions, assisting multiple provinces in formulating government debt resolution plans[23]. Risk Management - The company emphasizes a strong risk management framework, with a focus on maintaining compliance and financial stability amid regulatory changes[3]. - The company has established a comprehensive risk management system, with the new risk assets for 2024 dropping to the lowest level in three years[26]. - The company aims to enhance risk management effectiveness through continuous improvement of risk management processes and tools[193]. - The company has implemented strict risk management policies to ensure controllable risks across customers, industries, and regions in 2024[194]. Investments and Technology - Investment in new technologies and product development has increased by 30%, with a focus on enhancing digital asset management services[3]. - The company has launched a new AI system, "Xindai," to support frontline business operations and customer service[27]. - The company has upgraded its "Smart Tao" ecosystem module and implemented AI assistants to enhance digital financial services[34]. - The company plans to invest over 200 billion yuan in supporting the real economy, with 31 projects funded amounting to approximately 10 billion yuan[34]. Awards and Recognition - The company has received multiple awards in 2024, including recognition for excellence in asset securitization and ESG disclosures, highlighting its commitment to quality and sustainability[6]. Employee Development - The employee count as of December 31, 2024, was 13,815, with 92% holding a bachelor's degree or higher[183]. - The company completed over 2,160 training sessions with more than 300,000 participants, enhancing employee professional capabilities[185]. - The company emphasizes a market-oriented compensation policy linked to operational performance, incorporating sustainability and risk management into its evaluation metrics[184].

Investment Rating - The report maintains an "Outperform" rating for the real estate industry and non-bank financials [1]. Core Insights - The report highlights the active involvement of Asset Management Companies (AMCs) in revitalizing the real estate sector, emphasizing the need for collaborative efforts in government empowerment, management restructuring, and the introduction of partners [3][12]. - It notes that since the second half of 2021, high-leverage real estate companies have faced debt defaults, prompting regulatory encouragement for banks and AMCs to engage in "ensuring delivery and stabilizing livelihoods" initiatives [3][12]. - The report discusses the acceleration of debt restructuring among distressed real estate firms, with a trend towards high debt reduction and various measures being adopted [3][52]. Summary by Sections AMC Involvement in Real Estate Revitalization - AMCs have been encouraged to participate in real estate revitalization, with the establishment of real estate relief funds led by local governments and AMCs [3][15]. - The People's Bank of China set up a special re-lending facility of 800 billion for real estate companies, targeting five major AMCs [3][15]. - China Cinda has been particularly proactive, establishing a 200 billion fund for revitalizing distressed real estate assets [3][15]. Common Financing Tools and Business Models - Common financing tools include "beneficial debt," which is used to support distressed companies during bankruptcy restructuring [31][32]. - The report outlines the operational models of AMCs, which often involve debt restructuring, introducing investors, and financing construction [3][16]. Progress in Debt Restructuring of Distressed Firms - The report indicates that debt restructuring for distressed firms is progressing, with domestic restructuring primarily focused on extending repayment periods [3][52]. - It highlights that international debt restructuring is more diverse, involving debt reduction, debt-to-equity swaps, and other measures [3][52]. - The report notes that the willingness of creditors to accept significant debt reductions is increasing, reflecting a more pragmatic approach [3][62]. Investment Recommendations - The report suggests that the market-oriented relief efforts encouraged by policies are crucial for AMCs to accelerate their involvement in the distressed asset sector [3][52]. - It emphasizes the importance of focusing on high-quality projects with temporary liquidity issues that are expected to be profitable [3][52].

Investment Rating - The report assigns a "Neutral" rating to China Cinda (01359.HK) [6] Core Views - China Cinda is a comprehensive financial group focused on non-performing asset management, with its business segments including non-performing asset operations and financial services [15][19] - The company has experienced stable asset size but declining revenue and net profit in recent years, with total assets at 1.58 trillion yuan and net profit of 1.6 billion yuan in the first half of 2024 [20][19] - The non-performing asset management segment accounted for 53% of revenue in the first half of 2024, while financial services contributed 48% [19] Summary by Sections Company Overview - China Cinda, established in 1999, primarily engages in non-performing asset management and has undergone a commercial transformation since 2004 [15] - The company operates through various subsidiaries, including banks, securities, and trust companies, with a workforce of approximately 14,000 [15] Non-Performing Asset Business - The non-performing asset management business has returned to its core operations, with stable acquisition and operational yields expected to benefit from economic recovery [2][29] - The company has reduced its acquisition and restructuring business scale, focusing on core operations [29][33] Financial Services Business - China Cinda has a complete range of financial service licenses through its subsidiaries, covering banking, securities, futures, public funds, trusts, and leasing [47] - The financial services segment has shown a steady increase in revenue contribution, with South Commercial Bank facing rising non-performing loan ratios [47][48] Profit Forecast and Valuation - The company is expected to see net profits of 2.4 billion, 4 billion, and 4.7 billion yuan from 2024 to 2026, with corresponding EPS of 0.06, 0.11, and 0.12 yuan [3][72] - The estimated reasonable valuation ranges from 1.27 to 1.62 HKD, indicating a potential premium of 2% to 30% over the current stock price [3][6]

Investment Rating - The report assigns a "Neutral" rating to China Cinda (01359.HK) [6] Core Views - China Cinda is a comprehensive financial group focused on non-performing asset management, with its business segments including non-performing asset operations and financial services. The company has shown stable asset size but declining revenue and net profit in recent years [1][15] Summary by Relevant Sections Company Overview - China Cinda, established in 1999, primarily engages in non-performing asset management and has transitioned from policy-based operations to commercial activities. The company operates through various subsidiaries, including banks, securities, and trust companies, with a workforce of approximately 14,000 [15][16] Financial Performance - The total assets of China Cinda have remained stable around 1.5 trillion yuan, with total assets reported at 1.58 trillion yuan as of Q2 2024. However, operating revenue has decreased, with a reported revenue of 37.4 billion yuan in the first half of 2024, down 1.6% year-on-year. The net profit attributable to ordinary shareholders was 1.6 billion yuan, reflecting a significant decline of 53.9% [20][1] Non-Performing Asset Business - The non-performing asset management business has returned to its core operations, focusing on acquisition and restructuring activities. The company expects to benefit from economic recovery, which may improve the profitability of its acquisition business [2][29] Financial Services - China Cinda operates a complete range of financial services through its subsidiaries, including banking, securities, and trust services. The financial services segment has seen an increase in revenue contribution, with financial services accounting for 45% of total revenue in the first half of 2024 [19][47] Profit Forecast and Valuation - The report forecasts a net profit of 2.4 billion yuan for 2024, with expected growth rates of -43.2%, 67.2%, and 16.0% for the years 2024, 2025, and 2026, respectively. The estimated earnings per share (EPS) for these years are projected at 0.06, 0.11, and 0.12 yuan, with corresponding price-to-earnings (PE) ratios of 18, 11, and 9 [3][72]

Investment Rating - The investment rating for the company is Neutral [5] Core Views - The company is expected to benefit from economic recovery, with its performance stabilizing after a decline in recent years [1][2] - The company's total assets have remained stable around 1.5 trillion yuan, but revenue and net profit have decreased significantly [1][17] - The company’s core business includes non-performing asset management and financial services, with a notable shift towards financial services in recent years [16][44] Summary by Sections Company Overview - The company, China Cinda (01359.HK), is a comprehensive financial group focused on non-performing asset management, with a history dating back to 1999 [12] - It operates through various subsidiaries, including banks, securities, and trust companies, and has a workforce of approximately 14,000 employees [12] Financial Performance - As of mid-2024, the company reported total assets of 1.58 trillion yuan, with operating revenue of 37.4 billion yuan and a net profit of 1.6 billion yuan [1][17] - The return on equity (ROE) was 2% in 2023 and is estimated to drop to around 1% in 2024 [1][22] Non-Performing Asset Management - The non-performing asset management business has returned to its core operations, with a focus on acquisition and operational management of distressed assets [2][26] - The acquisition and operational management segment is expected to stabilize and benefit from economic recovery [2][29] Financial Services - The company has a complete range of financial service licenses, including banking, securities, and trust services [44] - The financial services segment has seen a rising revenue share, contributing significantly to overall income [16][44] Profit Forecast and Valuation - The company’s net profit is projected to be 2.4 billion yuan in 2024, with a significant recovery expected in 2025 and 2026 [3][77] - The estimated price-to-earnings (PE) ratio for the upcoming years is projected to be 18, 11, and 9 for 2024, 2025, and 2026 respectively [3][77] - The reasonable valuation range for the company is estimated to be between 1.27 and 1.62 HKD, indicating a potential premium over the current stock price [3][5]