Core Viewpoint - China Cinda announced the transfer of 22.137 billion shares of domestic stock from its controlling shareholder, the Ministry of Finance, to Central Huijin Investment Co., Ltd., making Huijin the new controlling shareholder [1] Group 1 - The Ministry of Finance plans to transfer its 22.137 billion shares, which represent approximately 58% of the company's total issued shares, to Central Huijin Investment Co., Ltd. [1] - After the transfer, the Ministry of Finance will no longer hold any shares in the company, and Central Huijin will directly hold the 22.137 billion shares [1] - The company will continue to be a state-controlled financial institution following the completion of this transfer [1]

Core Points - The asset package primarily consists of debtors and guarantors located in Beijing [1] - The total debt amount is RMB 787,852.58 million, with principal at RMB 683,491.69 million, interest at RMB 102,504.42 million, and other fees at RMB 1,856.49 million [6] - The restructuring consideration for the project is RMB 133,746.43 million, with the guarantor (or designated third party) required to make a one-time payment to be exempt from guarantee responsibilities [4] Debt Details - The asset package includes detailed information on 22 debt claims against Beida Fangzheng Group Co., Ltd. and other entities, with various amounts listed in RMB [3] - The total principal amount across all claims is RMB 683,491.69 million, while the total debt amount is RMB 787,852.58 million [6] - Specific claims include amounts such as RMB 115,104.80 million and RMB 20,950.78 million, among others, with guarantees provided by Beida Asset Management Co., Ltd. and others [3] Public Notice and Inquiry - The public notice period for this project is 5 working days, during which inquiries or objections can be submitted [5] - If there are any objections or high-price acquisition interests during the public notice period, the debt restructuring plan will be temporarily suspended [7] - Contact information for inquiries includes phone numbers and email addresses for company representatives [8]

Group 1 - The establishment of Xinxing New Energy (Guangdong) Investment Co., Ltd. has been reported, with a registered capital of 1.913 billion yuan [1] - The legal representative of the newly established company is Zheng Haomin, and its business scope includes investment activities using its own funds [1] - The company is jointly held by China Cinda and other stakeholders, indicating a collaborative investment approach [2]

Group 1 - Two new companies, Wuhu Xinxinjin Equity Investment Co., Ltd. and Wuhu Xinxinno Equity Investment Co., Ltd., have been established with registered capital of 200 million and 300 million respectively [1] - Both companies are wholly owned by China Cinda (01359.HK) [2] - The business scope of both companies includes investment activities using their own funds [1]

Investment Rating - The report assigns an "Overweight" rating to China Cinda (01359 HK) with a current price of HKD 1 43 and a target price of HKD 1 81 [1] Core Views - China Cinda is a leading player in the non-performing asset management (NPA) sector with a diversified financial services portfolio The NPA business accounts for 58 3% of revenue 52 7% of pre-tax profit and 57 3% of total assets as of 2023 [2] - The company is expected to benefit from economic recovery with increased NPA supply and improved disposal efficiency The NPA business achieved a gross yield of 4 3% in H1 2024 slightly down from the peak of 7 6% in 2021 [3] - Financial services particularly Nanyang Commercial Bank and Cinda Securities are poised for performance improvement driven by favorable interest rate environments and capital market opportunities [3] Financial Performance - Revenue is projected to grow from RMB 76 167 7 million in 2023 to RMB 84 637 4 million in 2026 with a CAGR of 3 68% [1] - Net profit attributable to shareholders is expected to increase from RMB 5 820 9 million in 2023 to RMB 9 376 5 million in 2026 with a CAGR of 23 05% [1] - EPS is forecasted to rise from RMB 0 11 in 2023 to RMB 0 20 in 2026 [1] NPA Business Analysis - The NPA business is the core revenue driver with traditional disposal debt-to-equity swaps and restructuring as key strategies The traditional disposal business has seen a decline in IRR from 18 6% in 2014 to 7 4% in 2023 [25][26] - Debt-to-equity swaps primarily focus on energy sector companies with cautious market-oriented approaches [31] - Restructuring business mainly involves real estate and manufacturing sectors with a typical cycle of 1-2 years [33] Financial Services Business - Nanyang Commercial Bank contributes significantly to the financial services segment with 67 5% of revenue and 52 4% of pre-tax profit in 2023 [52] - Cinda Securities is expected to benefit from capital market recovery with asset management business gaining importance [60] Valuation and Investment Recommendation - The NPA business is valued at 11x PE with a target value of RMB 45 087 billion while the financial services business is valued at 5x PE with a target value of RMB 17 607 billion [3] - The total target value is RMB 62 694 billion corresponding to a target price of HKD 1 81 per share [3] Industry Context - The NPA industry has evolved through policy-oriented commercial transformation and comprehensive commercialization stages with China Cinda playing a pivotal role since its establishment in 1999 [11][15][16] - Recent policies including tax incentives and local debt resolution initiatives have enhanced the importance of AMCs in the financial system [22][23]

Group 1 - A new partnership named Tianjin Beichen District Chenxin Equity Investment Partnership (Limited Partnership) has been established, with the executive partner being Xinda Capital Management Co., Ltd. [1] - The business scope of the partnership includes private equity fund activities such as equity investment, investment management, and asset management [1] - The partnership is jointly held by Tianjin Beida Chen'an Technology Development Co., Ltd., China Xinda (01359.HK), and Xinda Capital Management Co., Ltd. [1]

Summary of Conference Call Company or Industry Involved - The conference call is associated with Guangfa Securities, a financial services company Core Points and Arguments - The content of the conference call is intended solely for the reference of Guangfa Securities clients and does not constitute investment advice under any circumstances [1] - Guangfa Securities disclaims any responsibility for losses incurred from the use of the conference call content unless explicitly stated by laws and regulations [1] - Participants are advised not to rely solely on the conference call content for decision-making and should exercise independent judgment [1] Other Important but Possibly Overlooked Content - The conference call emphasizes the importance of independent analysis and decision-making in investment activities [1]

Financial Performance - Net profit for the first half of 2024 was RMB 3.5 billion, an increase of 20% compared to the same period last year[8]. - Total revenue for the six months ended June 30, 2024, was RMB 35,075.9 million, a slight increase from RMB 34,297.7 million in the same period of 2023, representing a growth of 2.3%[9]. - The company reported a net loss of RMB 382.5 million from the disposal of subsidiaries and associates in the first half of 2024, compared to a profit of RMB 296.9 million in the same period of 2023[35]. - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 2,155.9 million, down from RMB 4,067.6 million in the same period of 2023, indicating a decrease of 47%[9]. - The total comprehensive income for the period was RMB 3,508,342 thousand, compared to RMB 5,753,118 thousand in the same period of 2023, representing a decrease of about 38.9%[199]. Asset Management - The company’s asset management business saw a 25% increase in revenue, totaling RMB 1.5 billion[8]. - The company has allocated RMB 200 million for research and development in new technologies[8]. - The company plans to enhance its financial support for technology innovation, green transformation, and digital economy sectors[14]. - The company continues to focus on the non-performing asset market and strengthen its core business advantages[23]. - The company’s total revenue for the first half of 2024 was RMB 35,075.9 million, compared to RMB 34,297.7 million in the same period of 2023[70]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[8]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market reach[8]. - The company continues to focus on acquiring NPLs from both financial and non-financial institutions, with a diversified approach to asset management and investment strategies[75]. - The company aims to support the resolution of risks in the real estate sector and assist in the restructuring of problematic enterprises[155]. - The company will continue to implement proactive fiscal and stable monetary policies to promote economic recovery[155]. Risk Management - Risk management strategies have been strengthened, with a focus on compliance and regulatory changes impacting the financial sector[8]. - The company has established a comprehensive risk management system to identify and manage potential risks effectively[135]. - The company emphasizes the importance of operational risk management by enhancing governance, business operations, and risk management processes[148]. - The company actively strengthens credit risk management by focusing on problematic institutions and assets, optimizing business structure for high-quality development[143]. - The company has updated its risk monitoring and early warning tools to enhance the effectiveness of risk management[135]. Financial Position - Total assets as of June 30, 2024, amounted to RMB 1,583,795.2 million, a decrease from RMB 1,594,009.3 million at the end of 2023[10]. - The total liabilities as of June 30, 2024, were RMB 1,365,966.8 million, compared to RMB 1,378,051.9 million at the end of 2023, showing a reduction of 0.8%[10]. - The net asset value per share as of June 30, 2024, was RMB 4.21, slightly up from RMB 4.18 in the same period of 2023[11]. - The total amount of non-performing loans as of June 30, 2024, was RMB 232,179.3 million, reflecting a decrease from RMB 238,959.0 million as of June 30, 2023[22]. - The company’s bond liabilities decreased from RMB 302,762.1 million to RMB 276,814.2 million, a reduction of 8.6%[49]. Employee and Governance - As of June 30, 2024, the total number of employees is 13,884, with 87.9% located in mainland China and 12.1% in Hong Kong and Macau[131]. - The company has implemented a compensation policy linked to operational performance, promoting high-quality business development[132]. - The board of directors includes 11 members, with the chairman being Mr. Zhang Weidong[167]. - The company has established a comprehensive risk management system that includes a three-line defense structure, ensuring effective risk control within acceptable limits[180]. - The company is committed to enhancing corporate governance and has complied with the corporate governance code as per Hong Kong listing rules[179]. Revenue Sources - Interest income for the first half of 2024 was RMB 16,559.8 million, compared to RMB 16,120.2 million in the first half of 2023, reflecting an increase of 2.7%[9]. - Trust business commission and fee income increased by 139.2% from RMB 227.8 million in the first half of 2023 to RMB 544.8 million in the first half of 2024, mainly due to increased income from trust plan confirmations[32]. - The financing lease business achieved net income of RMB 944.9 million in the first half of 2024, compared to RMB 906.7 million in the same period of 2023[126]. - The asset management business reported revenue of RMB 328.2 million, representing 20.6% of total revenue, down from 28.8% in the first half of 2023[119]. - The company’s income from financial NPLs was RMB 4,505.5 million, which is 63.8% of total NPL income, up from 41.3% in the previous year[77].

Company Overview - China Cinda Asset Management Co., Ltd. announced its unaudited interim results for the six months ended June 30, 2024[1]. - The company will release its full interim report in late September 2024, available on the Hong Kong Stock Exchange and its own website[1]. - The board of directors includes executive directors Zhang Weidong, Liang Qiang, and Zhao Limin, among others[1]. - The company is registered in Beijing, with its main business location in Hong Kong[6]. - The company has a unified social credit code of 91110000710924945A[6]. - The stock codes for H-shares are 01359 for ordinary shares and 04621 for preferred shares listed on the Hong Kong Stock Exchange[7]. Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 35,075.9 million, an increase of 2.3% compared to RMB 34,297.7 million for the same period in 2023[9]. - Interest income rose to RMB 16,559.8 million, up 2.7% from RMB 16,120.2 million in the previous year[9]. - Net profit attributable to shareholders for the period was RMB 2,155.9 million, down 46.9% from RMB 4,067.6 million in the same period last year[9]. - The company reported a significant increase in the fair value changes of other financial instruments, reaching RMB 5,353.7 million, compared to RMB 4,906.0 million in the previous year[9]. - The total equity attributable to shareholders increased to RMB 193,601.9 million from RMB 192,342.1 million year-over-year[10]. - The company’s investment income was RMB 254.3 million, slightly down from RMB 258.9 million in the previous year[9]. - The company reported a decrease in inventory sales revenue to RMB 2,596.6 million from RMB 2,132.8 million year-over-year[9]. - The annualized average return on equity (ROAE) for the period was 2.04%, while the annualized average return on total assets (ROAA) was 0.33%[16]. - Earnings per share (EPS) decreased to RMB 0.04 from RMB 0.09 in the previous year[1]. Asset and Liability Management - Total assets decreased slightly to RMB 1,583,795.2 million from RMB 1,594,009.3 million year-over-year[10]. - Total liabilities also saw a decrease, amounting to RMB 1,365,966.8 million compared to RMB 1,378,051.9 million in the previous year[10]. - The company’s total liabilities related to pending litigation amounted to RMB 8,666.4 million as of June 30, 2024, with provisions for expected liabilities increasing from RMB 6.0 million to RMB 157.3 million[69]. - The total amount of financial assets measured at amortized cost was RMB 97,149.3 million, a decrease of 18.9% from RMB 119,749.9 million[62]. - The group's borrowings as of June 30, 2024, were RMB 549,552.8 million, a decrease of 1.7% from RMB 558,870.5 million as of December 31, 2023[64]. Non-Performing Assets - The company continued to focus on the non-performing asset market, with new acquisitions of non-performing loans amounting to RMB 17,260.4 million in H1 2024[21]. - The fair value changes of non-performing assets rose from RMB 2,836.3 million in H1 2023 to RMB 4,948.9 million in H1 2024, contributing 13.9% to total revenue[18]. - The company reported a significant increase in impairment losses for customer loans and advances, rising by 31.2% from RMB 1,748.5 million in the first half of 2023 to RMB 2,293.2 million in the first half of 2024[41]. - The net amount of non-performing loans was RMB 41,418.8 million, down 30.0% from RMB 59,193.0 million, primarily due to active asset structure adjustments[61]. - The income from non-performing debt assets was RMB 7,065.5 million in the first half of 2024, a decrease from RMB 8,493.3 million in the same period of 2023[78]. Risk Management - The company emphasizes liquidity risk management, ensuring liquidity safety amid a reasonable market liquidity environment in the first half of 2024[148]. - The company has strengthened risk management for key clients, enhancing the ability to manage exposure to major client risks[149]. - The company is committed to improving operational risk management by optimizing key risk monitoring indicators and enhancing management tools[150]. - The company has maintained a stable reputation risk management level, with overall risk management improving steadily in the first half of 2024[151]. - The company has implemented the "Group Risk Appetite Statement (2024)" approved by the board, focusing on optimizing risk indicators and enhancing risk management mechanisms[139]. Governance and Compliance - The company emphasizes compliance with laws and regulations, ensuring accurate and timely information disclosure to investors[172]. - The company has fully complied with the corporate governance code as per the Hong Kong Listing Rules during the reporting period[178]. - The board of directors consists of ten members, with independent non-executive directors accounting for over one-third of the total[174]. - The company has not experienced any significant litigation or arbitration matters that adversely affect its business, financial status, or operating performance during the reporting period[185]. - The company has continuously improved its internal control mechanisms and systems throughout the first half of 2024[180]. Future Outlook - The global economic environment remains uncertain, with geopolitical conflicts and high levels of global debt impacting growth prospects[13]. - The outlook for the second half of 2024 indicates a stable Chinese economy, but challenges such as insufficient effective demand and complex external environments remain[156]. - In the second half of 2024, macro policies are expected to be proactive, continuing to implement positive fiscal policies and prudent monetary policies to support economic recovery[157]. - The company plans to enhance its risk management capabilities and improve service quality to support the real economy, focusing on the restructuring of problem enterprises and local debt risk mitigation[158].

2013—2023 中国信达资产管理股份有限公 CHINA CINDA ASSET MANAGEMENT CO., ( 在中華人民共和國註冊成立的股份有限公司 ) 股份代號：01359 優先股股份代號：04621 2023 年度報告 公司簡介 本公司的前身中國信達資產管理公司成立於1999年4月，是經國務院批准，為有效化解金融風險、維護金融體系 穩定、推動國有銀行和企業改革發展而成立的首家金融資產管理公司。2010年6月，中國信達資產管理公司整體 改制為中國信達資產管理股份有限公司。2012年4月，本公司引進全國社會保障基金理事會、UBS AG、中信資 本控股有限公司和渣打銀行四家戰略投資者。2013年12月12日，本公司在香港聯交所主板掛牌上市，成為首家 登陸國際資本市場的中國金融資產管理公司。 本公司的主要業務包括不良資產經營業務和金融服務業務，其中不良資產經營是本公司核心業務。本公司在中國 內地的30個省、自治區、直轄市設有33家分公司，在內地和香港擁有九家直接管理的從事不良資產經營和金融 服務業務的平台子公司，包括南洋商業銀行有限公司、信達證券股份有限公司、中國金谷國際信託有限責任公 司、信達金融租賃 ...