Financial Reporting Changes - The company reported a significant change in its financials due to the adoption of IFRS 9, impacting shareholder equity directly from January 1, 2018[10]. - The company’s interim financial statements are prepared in accordance with international financial reporting standards, with all figures presented in Renminbi[10]. - The financial data for the first half of 2020 separates the results of discontinued operations from continuing operations, with the tax effect of discontinued operations presented separately in the income statement[10]. Company Structure and Operations - As of June 30, 2020, the company no longer holds any equity in Happiness Life Insurance, which was previously 50.995% owned and classified as held for sale[10]. - The report indicates that the company has undergone a significant restructuring, with the insurance business no longer included in its operations[10]. - The company has two operating segments: distressed asset management and financial services, which include banking, securities, futures, public funds, trust, leasing, and insurance businesses[64]. Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 45,819.9 million, a slight increase from RMB 45,464.1 million in the same period of 2019[11]. - Net profit attributable to shareholders for the period was RMB 6,340.7 million, down from RMB 8,685.3 million in the previous year, representing a decrease of approximately 27%[11]. - The company reported a pre-tax profit from continuing operations of RMB 10,713.1 million, compared to RMB 12,729.8 million in the same period last year, reflecting a decline of about 15.9%[11]. Asset and Liability Management - The total assets of the company as of June 30, 2020, amounted to RMB 1,531,817.5 million, an increase from RMB 1,488,242.0 million at the end of June 2019[12]. - The total liabilities increased to RMB 1,339,643.1 million from RMB 1,304,472.3 million year-over-year, indicating a rise of approximately 2.7%[12]. - The company’s equity attributable to shareholders increased to RMB 167,200.0 million from RMB 161,377.8 million year-over-year, reflecting a growth of approximately 5.1%[12]. Revenue Sources and Growth - The company reported a significant increase in other income and net gains, which rose to RMB 4,906.0 million from RMB 3,322.0 million in the previous year, an increase of about 47.7%[11]. - Income from non-performing assets measured at amortized cost rose by 7.9% from RMB 8,437.5 million in H1 2019 to RMB 9,105.6 million in H1 2020, accounting for 19.9% of total revenue from continuing operations[23]. - Inventory sales revenue increased by 96.4% from RMB 4,919.1 million in H1 2019 to RMB 9,659.2 million in H1 2020, reflecting significant growth in real estate project deliveries[39]. Risk Management - The company has a strong focus on risk management and capital management, with detailed sections dedicated to these topics in the report[6]. - The company emphasized a focus on non-performing assets management amid economic pressures and the impact of COVID-19[17]. - The company established a comprehensive risk management policy covering seven major risk categories, including credit risk and market risk, to prevent systemic risks[169]. Economic Environment - The Chinese economy experienced a GDP decline of 1.6% year-on-year in the first half of 2020, with a recovery of 3.2% growth in the second quarter[16]. - The government implemented a fiscal deficit increase to over 3.6% and issued RMB 1 trillion in special bonds to combat the pandemic's economic impact[16]. - The financial market remains volatile, with significant challenges and opportunities arising from the pandemic's impact on the industry[17]. Management and Governance - The company appointed Zhang Weidong as CEO effective January 21, 2020, and Hu Jiliang as Vice President effective March 31, 2020[200]. - The board of directors includes executive directors Zhang Ziai (Chairman) and Zhang Weidong, along with several non-executive and independent directors[196]. - The company has maintained consistent information regarding its board members compared to the previous annual report, with no additional disclosures required[200].

Company Overview - China Cinda Asset Management Co., Ltd. was established in April 1999 and became the first financial asset management company approved by the State Council to address financial risks and stabilize the financial system[4]. - In 2019, the company received multiple awards, including the "Top 100 Enterprises in China" and "Best Listed Company" at the China Securities Golden Bauhinia Awards[4]. - As of 2019, the company operates 33 branches across 30 provinces, autonomous regions, and municipalities in mainland China, employing approximately 16,000 staff[4]. - The company has strategic investors including the National Social Security Fund Council and UBS AG, enhancing its capital structure and market position[4]. Financial Performance - Total assets reached RMB 1,513.23 billion in 2019, an increase from RMB 1,495.76 billion in 2018[18]. - Total revenue from continuing operations was RMB 120.03 billion in 2018, with a net profit attributable to shareholders of RMB 15.02 billion[18]. - The company reported a net profit of RMB 15.02 billion in 2019, reflecting a stable performance[18]. - The average return on equity was 8.56% in 2019, compared to 12.04% in 2018[18]. - Earnings per share were RMB 0.31 in 2019, up from RMB 0.29 in 2018[18]. - The company achieved a net profit attributable to shareholders of RMB 13.05 billion, an increase of 8.4% compared to the previous year[33]. - The total revenue for the company in 2019 was RMB 107,780.8 million, slightly up from RMB 107,026.0 million in 2018[128]. Asset Management and Non-Performing Assets - The company’s core business is the management of non-performing assets, which remains a significant focus for future growth[4]. - The company is focusing on the core business of non-performing assets and financial services to create competitive advantages[26]. - The company acquired operating non-performing assets totaling RMB 52.16 billion in 2019, with a net amount of RMB 198.15 billion by the end of the year[33]. - The net amount of non-performing loans was RMB 385,449.7 million in 2019, a decrease from RMB 405,247.9 million in 2018[131]. - The company’s strategy includes acquiring and managing non-performing assets from both financial and non-financial institutions[133]. Risk Management and Governance - The company aims to expand its financial services and improve governance practices, as evidenced by its recognition for corporate governance and social responsibility[4]. - New strategies will focus on risk management and improving operational efficiency[16]. - The company plans to strengthen risk management by effectively resolving existing risks and strictly controlling new risks, with a focus on liquidity risk prevention[34]. - The company will enhance its governance structure and improve internal control compliance systems to support high-quality development[39]. Revenue Sources and Business Segments - The non-performing asset management segment accounted for 70.2% of total revenue in 2019, down from 73.6% in 2018, indicating a shift in revenue sources[128]. - Financial services revenue increased by 14.6% year-on-year, contributing to a 3.8 percentage point increase in its share of total group revenue[102]. - The company’s financial services segment generated revenue of RMB 33,684.2 million in 2019, representing 31.3% of total revenue, up from 27.5% in 2018[128]. Operational Efficiency and Employee Management - The company emphasizes internal fairness and external competitiveness in its compensation policy to promote stable operations and development[200]. - The company’s human resources management focused on market-oriented personnel mechanisms and salary distribution reforms to support high-quality development[197]. - The headquarters has restructured to enhance direct management capabilities and strengthen compliance management by establishing a business management department and four strategic customer departments[198]. Strategic Initiatives and Future Plans - The company plans to expand its market presence and enhance its product offerings in the coming years[16]. - The company aims to enhance its project restructuring and investment banking capabilities to mitigate financial risks[26]. - The company is committed to developing new technologies to support its growth initiatives[16]. - The company will continue to implement proactive fiscal policies and maintain reasonable liquidity to support economic stability[41].

Financial Performance - The company reported a total revenue of RMB 1.2 billion for the first half of 2019, representing a year-on-year increase of 15%[14]. - Net profit attributable to shareholders reached RMB 300 million, up 10% compared to the same period last year[14]. - Total revenue for the six months ended June 30, 2019, was RMB 53,268.5 million, a decrease of 2.7% from RMB 54,771.7 million in the same period of 2018[16]. - Net profit attributable to shareholders for the same period was RMB 8,685.3 million, slightly up from RMB 8,620.3 million in 2018, reflecting a growth of 0.8%[16]. - The company achieved a net profit attributable to shareholders of RMB 8,685.3 million in the first half of 2019, an increase of RMB 65.0 million, representing a growth of 0.8% compared to the same period last year[24]. - The company reported a pre-tax profit of RMB 13,409.2 million, an increase of 13.5% from RMB 11,815.9 million in the same period last year[27]. - The total income from the non-performing asset management segment accounted for 66.0% of total revenue in the first half of 2019, down from 69.3% in the same period of 2018[68]. - The pre-tax profit margin improved to 25.2% in the first half of 2019, compared to 21.6% in the same period of 2018[66]. Asset and Liability Management - The total assets of the company as of June 30, 2019, amounted to RMB 50 billion, reflecting a growth of 8% year-on-year[14]. - The total assets as of June 30, 2019, amounted to RMB 1,488,242.0 million, up from RMB 1,460,566.2 million in 2018, indicating a growth of 1.9%[18]. - The company reported a decrease in total liabilities to RMB 1,304,472.3 million from RMB 1,285,407.4 million, a reduction of 1.5%[18]. - The total liabilities as of June 30, 2019, amounted to RMB 1,166,246.4 million, with borrowings, deposits, and bonds payable accounting for 41.5%, 20.9%, and 22.4% of total liabilities, respectively[87]. - The borrowing balance was RMB 541,478.3 million, a decrease of 5.1% from RMB 570,870.2 million as of December 31, 2018, due to effective control over borrowing growth[88]. - The total deposits increased by 7.1% to RMB 272,059.1 million as of June 30, 2019, from RMB 254,099.9 million as of December 31, 2018[89]. Market Expansion and Strategic Initiatives - The company has expanded its user base by 20%, reaching a total of 1 million active users in the asset management sector[14]. - Future outlook indicates a projected revenue growth of 12% for the second half of 2019, driven by new product launches and market expansion strategies[14]. - Market expansion efforts include entering three new provinces in China, expected to contribute an additional RMB 100 million in revenue[14]. - The company plans to pursue strategic acquisitions to enhance its market position, targeting firms with complementary services[14]. - The company plans to continue expanding its market presence and investing in new technologies to enhance its competitive edge in the industry[17]. Risk Management - Risk management strategies have been strengthened, with a focus on reducing non-performing assets by 5% by the end of 2019[14]. - The company has implemented new compliance measures in response to regulatory changes, ensuring adherence to the latest financial reporting standards[14]. - The company has established a comprehensive risk management framework involving all employees, focusing on identifying and managing potential risks within the company's risk appetite[169]. - The overall risk preference statement emphasizes maintaining a stable and sustainable profitability while ensuring compliance with regulatory capital adequacy requirements[171]. - The company has developed a comprehensive risk management policy system covering major risk categories, which is continuously updated based on management needs[174]. Investment and Financial Instruments - The company is investing RMB 200 million in research and development for new financial technologies aimed at enhancing service efficiency[14]. - The fair value changes of bad debt assets increased by 18.7% to RMB 6,503.4 million, with unrealized gains turning from a loss of RMB 50.1 million in 2018 to a gain of RMB 1,442.2 million in 2019[30][33]. - The fair value changes of financial instruments measured at fair value through profit or loss increased by 14.0% from RMB 5,769.3 million in H1 2018 to RMB 6,579.6 million in H1 2019[36]. - The total financial assets measured at fair value and recognized in profit or loss amounted to RMB 431,870.0 million, an increase of 0.7% from RMB 428,791.0 million as of December 31, 2018[75]. Compliance and Governance - The company has implemented a comprehensive risk management framework involving all employees, focusing on identifying and managing potential risks within the company's risk appetite[169]. - The company is committed to anti-money laundering compliance, enhancing employee awareness and implementing comprehensive self-inspections[185]. - The company will continue to strengthen risk management and improve governance effectiveness to ensure liquidity safety[189]. Shareholder Information - The major shareholder, the Ministry of Finance, holds 64.45% of the company's domestic shares, totaling 24,596,932,316 shares[194]. - The Social Security Fund holds 7.60% of the H shares, amounting to 2,901,006,093 shares[194]. - As of June 30, 2019, there was one preferred shareholder holding 160,000,000 shares, representing 100% of the preferred shares[196].

Company Overview - The company was established in 1999 and became the first financial asset management company in China, listed on the Hong Kong Stock Exchange in December 2013[4]. - The company operates in 30 provinces and municipalities in mainland China, with 33 branches and approximately 18,000 employees[4]. - The core business of the company is non-performing asset management, which is a significant part of its overall operations[4]. - The company has strategic investors including the National Social Security Fund, UBS AG, CITIC Capital Holdings, and Standard Chartered Bank[4]. - The company has established eight subsidiaries engaged in non-performing asset management, asset management, and financial services, including Nanyang Commercial Bank and Cinda Securities[4]. Awards and Recognition - In 2018, the company won multiple awards, including the "Best Shareholder Return Company" at the Sina Finance Golden Lion Awards and the "Outstanding Financial Asset Management Company Award" at the Financial界 website's 2018 Leading China Awards[4]. - The company received several awards in 2018, including the "Best Shareholder Return Company" and "Most Valuable Listed Company" in recognition of its governance and operational performance[37]. Financial Performance - The total revenue for 2018 was RMB 107,026 million, an increase from RMB 91,657 million in 2017, representing a growth of approximately 16.6%[28]. - The net profit attributable to shareholders for 2018 was RMB 12,036.1 million, compared to RMB 15,512.2 million in 2017, indicating a decrease of about 22.4%[28]. - The company reported a strong performance in 2018, continuing to be recognized as a leading brand in the financial sector[4]. - The company reported a tax expense of RMB 6,908.6 million for 2018, compared to RMB 7,373 million in 2017, indicating a slight reduction in tax liabilities[28]. - The company faced a total expense of RMB 90,207.6 million in 2018, down from RMB 94,236.7 million in 2017, reflecting cost management efforts[28]. - The company reported a significant increase in the fair value changes of other financial instruments, which rose to RMB 15,068.9 million, a 483.6% increase from RMB 2,582.2 million in 2017[53]. - The company’s investment income for 2018 was RMB 154.4 million, a notable decrease from RMB 29,465.7 million in 2017, suggesting challenges in investment performance[28]. - The company achieved a net profit attributable to shareholders of RMB 12.04 billion for the year[34]. - The total assets of the group reached approximately RMB 1.5 trillion by the end of the reporting period, with a core Tier 1 capital adequacy ratio of 10.21%, providing a good safety margin compared to regulatory requirements[42]. Asset Management and Non-Performing Assets - The company is focused on developing new products and technologies to improve its service offerings and operational efficiency[4]. - The company aims to expand its market presence and enhance its asset management capabilities through strategic partnerships and acquisitions[4]. - The company is exploring new models for managing non-performing assets and enhancing value creation[34]. - The company maintained a leading market share in the acquisition of operating non-performing assets, with a continued high proportion of new acquisitions in the public market[42]. - The company realized disposal gains of RMB 11.27 billion from the acquisition and management of non-performing assets, enhancing operational efficiency[42]. - The income from non-performing financial assets was RMB 30,584.2 million in 2018, up from RMB 26,569.5 million in 2017[146]. - The company acquired non-performing loans worth RMB 169,597.6 million in 2018, down from RMB 202,053.5 million in 2017[136]. - The company’s non-financial non-performing assets reached RMB 211,733.0 million in 2018, representing 52.2% of total non-performing assets[139]. Risk Management and Challenges - The company is currently facing various risks and uncertainties that may impact future performance, as detailed in the "Management Discussion and Analysis" section of the report[14]. - The company emphasized the importance of risk management and supporting structural reforms in the economy[34]. - The company plans to implement a proactive fiscal policy and moderately loose monetary policy to support infrastructure construction and alleviate financing difficulties for private and small enterprises[49]. - The global economic environment remains complex, with increasing downward pressure on China's economy, necessitating a focus on high-quality development and structural reforms[49]. Strategic Initiatives - The company aims to strengthen capital management and optimize asset structure to ensure sustainable profitability and stable cash flow[43]. - The company aims to deepen reforms and innovations to improve operational management efficiency and risk control capabilities[36]. - The company will enhance supervision effectiveness and improve risk governance structures to better manage financial risks and support the real economy[47]. - The company has established a professional team for P2P risk disposal, actively participating in the resolution of P2P risks[36]. - The company continues to enhance its asset management services by increasing third-party fundraising efforts, aiming to improve the value of asset management services[160]. Investment and Capital Management - The company plans to continue expanding its investment and asset management services to maximize the value of non-performing assets[101]. - The self-owned capital investment balance for Xinda Investment increased from RMB 35.63 billion in 2017 to RMB 55.05 billion in 2018, marking a growth of approximately 54.5%[166]. - The total investment amount of China Cinda Asset Management Co., Ltd. reached RMB 55,052.8 million in 2018, up from RMB 35,626.8 million in 2017, representing a growth of 54.5%[167]. - The company has focused on reallocating resources such as capital, assets, and management models to help troubled enterprises recover their operational and financial capabilities[158]. Financial Services and Subsidiaries - The financial services segment's revenue share decreased by 8.2 percentage points in 2018 compared to 2017, primarily due to a significant drop in premium income from a subsidiary[101]. - The financial services segment reported a pre-tax loss of RMB 1,371.9 million in 2018, compared to a profit of RMB 2,366.6 million in 2017[134]. - The total assets of Nanyang Commercial Bank reached RMB 407.6 billion, up from RMB 363.1 billion in 2017, representing an increase of 12.3%[180]. - The total revenue from asset management business decreased to RMB 84.3 million in 2018 from RMB 151.5 million in 2017, a decline of 44.4%[188]. Revenue and Income Sources - The revenue from non-performing asset management business accounted for 41.9% of total revenue in 2018, up from 37.7% in 2017[135]. - The company experienced a 52.6% decline in net earned premium income, which fell to RMB 9,128.6 million from RMB 19,266.9 million in 2017[53]. - The company reported a significant increase in project supervision fee income, rising by 173.7% to RMB 262.2 million in 2018 from RMB 95.8 million in 2017[81]. - The total revenue from rental income increased by 33.8% to RMB 472.1 million in 2018 from RMB 352.8 million in 2017[81]. Legal and Compliance Issues - The company has ongoing legal disputes with potential liabilities amounting to RMB 2,243.7 million as of December 31, 2018, up from RMB 1,904.8 million in 2017[130].