Financial Performance - In 2022, the total revenue of China Cinda was RMB 80,988.4 million, a decrease of 17.1% compared to RMB 97,731.0 million in 2021[16]. - The profit attributable to shareholders of the company for the year was RMB 6,313.4 million, a decline of 47.5% from RMB 12,061.7 million in 2021[16]. - The pre-tax profit from continuing operations was RMB 10,457.6 million, a decrease of 46.0% compared to RMB 19,378.9 million in 2021[16]. - The net profit from continuing operations for the year was RMB 7,231.3 million, down 44.5% from RMB 13,000.5 million in 2021[16]. - The average return on equity decreased to 3.38% in 2022 from 7.15% in 2021[19]. - The cost-to-income ratio increased to 44.02% in 2022, compared to 32.15% in the previous year[19]. - The company achieved a net profit attributable to shareholders of 6.31 billion yuan in 2022, with an average return on equity of 3.38%[32]. - The total costs and expenses were RMB (79,466.6) million, a decrease of 5.0% from RMB (84,148.5) million in 2021[16]. - The impairment loss on assets was RMB (13,258.0) million, an increase from RMB (11,722.9) million in 2021[16]. Business Operations - The company’s core business focuses on non-performing asset management, which remains its primary revenue driver[2]. - The company maintained a leading position in the non-performing asset management sector, focusing on asset acquisition and disposal strategies[22]. - The company is actively participating in risk resolution pilot projects for small and medium-sized financial institutions, responding to national and regulatory concerns[22]. - The company aims to enhance its business layout in new energy and new economy sectors, aligning with national development strategies[23]. - The company is committed to supporting the delivery of 35,000 residential properties to ensure social and financial stability[23]. - The company is focused on building a competitive ecosystem centered around strategic clients and leveraging digital technology for enhanced risk management[24]. - The company has established a five-year plan for talent development, emphasizing the importance of human resources in maintaining competitive advantage[24]. Asset Management - As of the end of 2022, the total assets of the company reached RMB 1,615.99 billion, an increase from RMB 1,564.28 billion in 2021[17]. - The total liabilities of the company were RMB 1,407.99 billion, up from RMB 1,362.50 billion in 2021[17]. - The company acquired 74.2 billion yuan of operating non-performing loans in 2022, marking a 40.8% increase year-on-year, maintaining a leading position in the public market[33]. - The company participated in the resolution of non-performing assets totaling nearly 150 billion yuan for multiple financial institutions[33]. - The total amount of non-performing debt assets measured at amortized cost as of December 31, 2022, was RMB 107,988.7 million, a decrease of 25.3% from RMB 144,543.0 million on December 31, 2021[100]. - The net amount of non-performing loans was RMB 341,255.4 million, slightly up from RMB 340,200.6 million in 2021[113]. Risk Management - The company is committed to risk management and has outlined its strategies in the management discussion section of the report[12]. - The company is focused on enhancing risk management and asset quality, with a comprehensive risk management system in place[36]. - The company established a comprehensive risk management system covering seven major risk categories, including credit risk and market risk, and implemented a risk limit management plan[188]. - The company updated its recovery plan for 2022 to address extreme risk challenges, enhancing its systemic risk control mechanisms[189]. - The company improved its risk management tools and systems, launching a risk monitoring platform and developing a customer default probability prediction system[190]. - The company emphasized a proactive risk management approach, continuously optimizing risk monitoring and control policies to maintain asset quality[182]. Corporate Governance - The board of directors approved the 2022 annual report on March 28, 2023, with all 12 attending directors present[11]. - China Cinda's financial reports for 2022 were audited by Ernst & Young, receiving standard unqualified opinions[11]. - The company has strategic investors including the National Social Security Fund, UBS AG, and Standard Chartered Bank, enhancing its capital structure[2]. Market Position and Recognition - The company was awarded multiple accolades in 2022, including the "Most Investment Value High-Quality Development Listed Company" and "Best Operational Management Award" at the China Top 100 Enterprises Forum[3]. - The company aims to enhance its market presence and expand its financial services, leveraging its subsidiaries in various sectors[2]. Environmental and Social Responsibility - The company is actively expanding its green finance initiatives, including green funds and green bonds, to support environmental sustainability[27]. - The company is committed to serving the real economy and mitigating financial risks while adhering to the principles of sustainable development[31].

Financial Performance - In 2022, the total revenue was RMB 80,988.4 million, a decrease of 17.1% compared to RMB 97,731.0 million in 2021[19]. - The net profit attributable to shareholders was RMB 6,313.4 million in 2022, down from RMB 12,061.7 million in 2021, a decline of 47.7%[19]. - The pre-tax profit from continuing operations was RMB 10,457.6 million in 2022, down from RMB 19,378.9 million in 2021, a decrease of 46.0%[19]. - The impairment losses on assets were RMB (13,258.0) million in 2022, compared to RMB (11,722.9) million in 2021, indicating an increase in impairment[19]. - The fair value changes of non-performing debt assets were RMB 11,284.3 million in 2022, down from RMB 15,475.8 million in 2021, a decline of 27.0%[19]. - The company reported a return on equity (ROE) of 3.38% and a return on assets (ROA) of 0.45% for the year[42]. - The average return on equity decreased to 3.38% in 2022 from 7.15% in 2021[21]. - The cost-to-income ratio increased significantly to 44.02% in 2022, compared to 32.15% in 2021[21]. - The company's total expenses decreased by 5.6% to RMB 79,466.6 million from RMB 84,148.5 million in 2021[43]. - The impairment loss of financial assets measured at amortized cost increased by 49.9% from RMB 4,334.3 million in 2021 to RMB 6,498.3 million in 2022[69]. Asset Management - The company’s core business focuses on the management of non-performing assets, which is critical for its operations[2]. - The non-performing asset management business accounted for 70.5% of the group's total revenue in 2022, down from 78.9% in 2021, and contributed 41.0% to pre-tax profit[75]. - The company maintained a leading position in the non-performing asset business, focusing on asset acquisition and disposal strategies[24]. - The total amount of non-performing loans purchased from financial institutions decreased by 28.7% to RMB 4,516.8 million, and from non-financial institutions decreased by 25.1% to RMB 103,471.9 million, resulting in a total decrease of 25.3% to RMB 107,988.7 million[89]. - The company acquired RMB 53,665.6 million in real estate assets, accounting for 47.4% of total acquisitions in 2022, up from 42.0% in 2021[120]. - The company’s acquisition of financial non-performing assets in 2022 was RMB 55,682.2 million, an increase from RMB 48,564.1 million in 2021[107]. - The company’s operational model for non-performing assets includes acquisition and restructuring strategies[110]. - The net amount of acquired operating non-performing assets reached RMB 241,034.2 million, representing a 16.9% increase from RMB 205,666.8 million in 2021[114]. Strategic Initiatives - The company plans to focus on market expansion and new product development in the upcoming fiscal year[18]. - The company is committed to improving risk management strategies to mitigate potential financial uncertainties[18]. - The company aims to maintain stability in the financial system and promote the reform and development of state-owned banks and enterprises[2]. - The company is enhancing its digital transformation efforts, aiming to improve risk management and decision-making through data-driven approaches[26]. - The company plans to continue focusing on stable operations and innovative development to enhance long-term value for investors[38]. - The company aims to strengthen its scientific judgment, professional management, and efficient execution capabilities for sustainable growth[38]. - The company is committed to implementing national policies to stabilize the economy and ensure the well-being of its stakeholders[40]. - The company will focus on increasing investment in non-performing asset management to solidify its core position in this area[185]. Awards and Recognition - The company received multiple awards in 2022, including the "Most Investment Value High-Quality Development Listed Company" and "Top 100 Enterprises in China" awards[3]. - The company has been recognized in various ESG rankings, indicating its commitment to sustainable practices[3]. Corporate Governance - The board of directors held its fourth meeting of 2023 on March 28, 2023, to approve the annual report for 2022[14]. - The current chairman and executive director, Zhang Weidong, has been in his position since June 2022, with a background in various financial roles since 1992[196]. - Liang Qiang has served as the executive director and president since October 2022, with extensive experience in the company since 1999[197]. - Zhao Limin has been an executive director and vice president since May 2022, previously holding multiple managerial positions within the company[198]. - The board of directors includes a mix of executive and non-executive members, with terms ranging from 2022 to 2025[194]. Risk Management - The company established a comprehensive risk management system covering seven major risk categories, including credit risk and market risk, and implemented a risk limit management plan[170]. - The company updated its recovery plan for 2022 to address extreme risk challenges, enhancing its systemic risk control mechanisms[171]. - The company actively promotes the construction of risk management information systems, successfully launching a risk monitoring platform and developing predictive systems for customer default probabilities[173]. - The company emphasizes a balanced development of benefits, quality, and scale while maintaining a stable risk appetite and ensuring capital adequacy in compliance with regulatory requirements[167]. - The company is committed to enhancing customer experience and optimizing service processes in both online and offline channels[138]. Financial Position - As of December 31, 2022, the total assets of the company reached RMB 1,615.99 billion, an increase from RMB 1,564.28 billion in 2021[20]. - The total liabilities amounted to RMB 1,407.99 billion, up from RMB 1,362.50 billion in 2021[20]. - The company's equity attributable to shareholders increased by 5.8% from RMB 178,800.8 million in 2021 to RMB 188,205.7 million in 2022[77]. - The company's cash and deposits with central banks decreased by 7.6% from RMB 18,045.7 million in 2021 to RMB 16,677.4 million in 2022[77]. - The company's total liabilities increased to RMB 1,407,993.9 million in 2022, up from RMB 1,362,503.8 million in 2021, marking a growth of 3.3%[77]. Employee Development - The employee count as of December 31, 2022, was 13,717, a decrease from 14,723 in 2021, with a notable increase in the proportion of employees with bachelor's degrees or higher to 92%[162]. - The company completed over 3,300 training sessions in 2022, benefiting more than 300,000 participants, to support business transformation and high-quality development[164]. Digital Transformation - The company is advancing its "Digital Cinda" strategy, achieving significant progress in data governance and technology empowerment[158]. - The risk monitoring platform was successfully launched, enabling proactive risk identification and supporting dynamic risk monitoring and assessment[159].

Financial Performance - The total revenue for the first half of 2022 was RMB 10.5 billion, representing a year-on-year increase of 15%[10] - The net profit attributable to shareholders for the same period was RMB 2.1 billion, up 20% compared to the previous year[10] - Total revenue for the six months ended June 30, 2022, was RMB 41,258.2 million, a slight decrease of 0.3% compared to RMB 41,401.6 million in the same period of 2021[11] - The net profit attributable to shareholders for the first half of 2022 was RMB 4,508.2 million, down 32.5% from RMB 6,687.4 million in the same period of 2021[11] - The company reported a pre-tax profit from continuing operations of RMB 7,032.4 million, down from RMB 9,747.7 million in the same period of 2021, reflecting a decline of 28.0%[11] - The company achieved a net profit attributable to shareholders of RMB 4,508.2 million, a decrease of RMB 2,179.2 million, or 32.6% year-on-year[18] - The annualized return on average equity (ROAE) for the period was 5.75%, down from 7.49% in the same period last year[18] - The annualized return on average assets (ROAA) was 0.64%, compared to 0.91% in the previous year[18] - The cost-to-income ratio increased to 35.14%, up from 33.41% year-on-year[18] - Earnings per share (EPS) for the period was RMB 0.12, down from RMB 0.15 in the same period last year[18] - The company reported a pre-tax profit of RMB 7,032.4 million in H1 2022, down 27.9% from RMB 9,747.7 million in H1 2021[46] Asset and Liability Management - The company reported an increase in total assets to RMB 150 billion, a growth of 12% year-on-year[10] - The total assets as of June 30, 2022, amounted to RMB 1,541,265.1 million, a decrease from RMB 1,604,243.4 million at the end of June 2021[12] - The total liabilities decreased to RMB 1,333,391.1 million from RMB 1,408,408.7 million year-over-year, indicating a reduction of approximately 5.3%[12] - The company's equity attributable to shareholders rose to RMB 188,493.7 million, compared to RMB 172,822.4 million in the same period last year, marking a growth of 9.5%[12] - The total assets of the company were RMB 142.9 billion, a decrease from RMB 147.3 billion as of December 31, 2021[122] - The total liabilities decreased by 2.1% to RMB 1,333,391.1 million as of June 30, 2022, compared to RMB 1,362,503.8 million at the end of 2021[51] Revenue Sources and Business Segments - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[10] - Revenue from inventory sales rose by 55.2% to RMB 7,039.0 million, up from RMB 4,534.4 million[21] - The financial services segment contributed 26.9% to total revenue in the first half of 2022, up from 24.2% in the same period of 2021[50] - The financial services segment's pre-tax profit accounted for 42.4% of total pre-tax profit in the first half of 2022, compared to 28.2% in the first half of 2021[50] - The revenue from the non-performing asset management business accounted for 73.4% of total revenue in the first half of 2022, compared to 76.4% in the first half of 2021[76] Risk Management - Risk management strategies have been strengthened, with a focus on reducing non-performing assets by 5% by the end of 2022[10] - The company is actively engaging in the disposal of non-performing assets to mitigate risks associated with rising bad loans[17] - The company emphasizes the importance of supporting small and micro enterprises and promoting infrastructure investment to stabilize the economy[16] - The company continues to focus on high-quality development and risk management amid complex economic conditions[18] - The company has focused on prudent investment and increased risk resolution efforts, leading to a reduction in the scale of non-performing loans[65] - The company aims to maintain stable profitability and capital growth while ensuring compliance with regulatory capital adequacy requirements[146] Investment and Development - The company has allocated RMB 500 million for research and development of new technologies in financial services[10] - New product launches in the asset management sector are expected to contribute an additional RMB 1 billion in revenue by the end of 2022[10] - The company is exploring potential mergers and acquisitions to enhance its service offerings and market reach[10] - The company aims to enhance its wealth management and fintech services as part of its strategic business directions[118] - The company is committed to optimizing its asset structure and promoting business transformation[194] Corporate Governance and Shareholder Information - The company emphasizes strict compliance with corporate governance principles and enhances risk management capabilities[189] - The actual controller of the company remains the Ministry of Finance, which oversees macroeconomic policies related to fiscal revenue and expenditure[172] - The company has a total of 1 preferred shareholder, CCB Nominees Limited, which holds 100% of the 2021 overseas preferred shares, totaling 85,000,000 shares[175] - The company approved a dividend distribution for the 2021 overseas preferred shares at a rate of 4.40%, with a total payout of $74.8 million (after tax) scheduled for November 3, 2022[177] - The company held its 2021 annual general meeting on June 28, 2022, approving ten resolutions including the 2021 financial statements and profit distribution plan[190] Employee and Operational Insights - The number of employees as of June 30, 2022, was 13,648, with 87.2% located in mainland China and 12.8% in Hong Kong and Macau[140] - Employees with a bachelor's degree or above accounted for 92%, while those with a master's degree or above made up 60% of the workforce[140] - The company has established a comprehensive risk management system that includes a three-line defense structure[196] - The internal audit system has been implemented to enhance the quality and efficiency of internal audits, focusing on risk management and compliance[199]

Achievements and Awards - In 2021, China Cinda Asset Management reported significant achievements, including winning multiple awards such as "Best Listed Company Award" and "Best ESG Practice Listed Company" from various financial institutions[4]. - The company has undergone a transformation since its establishment in 1999, becoming the first financial asset management company listed on the Hong Kong Stock Exchange in December 2013[4]. Business Operations - The company operates in 30 provinces and municipalities in mainland China, with 33 branches and approximately 15,000 employees[4]. - China Cinda's core business focuses on distressed asset management, which remains a key revenue driver[4]. - The company aims to expand its financial services and distressed asset management operations, leveraging its extensive network and expertise[4]. - The company has introduced strategic investors, including the National Social Security Fund and UBS AG, enhancing its capital structure and market position[4]. Financial Performance - The total revenue for 2021 was RMB 97,731 million, a decrease of 2.4% compared to RMB 100,134 million in 2020[20]. - The net profit for the year was RMB 13,000.5 million, down from RMB 14,737.3 million in 2020, reflecting a decline of 11.8%[20]. - The profit before tax from continuing operations was RMB 19,378.9 million, an increase of 18.0% from RMB 16,309.3 million in 2020[20]. - The net profit attributable to shareholders was RMB 12,061.7 million, a decrease of 9.0% compared to RMB 13,247.9 million in 2020[20]. - The interest income for 2021 was RMB 25,100.8 million, an increase of 5.0% from RMB 23,899.2 million in 2020[20]. - The total asset impairment loss was RMB (11,722.9) million, a decrease from RMB (14,096.8) million in 2020, indicating improved asset quality[20]. - The cost-to-income ratio increased to 32.15% in 2021, up from 25.46% in 2020[22]. - Earnings per share decreased to RMB 0.29 in 2021 from RMB 0.32 in 2020[22]. Asset Management - The company disposed of over RMB 50 billion in non-performing assets for four consecutive years, with disposal gains exceeding RMB 10 billion in 2021[26]. - New investments amounted to RMB 39 billion, maintaining a leading market share in the public market despite a significant decline in the supply of non-performing loans[26]. - The company acquired operating non-performing assets with new investments totaling RMB 50.42 billion, with a net income of RMB 13.42 billion from asset disposals[34]. - The non-performing asset management business accounted for 78.9% of total revenue in 2021, up from 70.5% in 2020[113]. Risk Management - The company emphasizes risk management and capital management as critical components of its operational strategy[4]. - The company implemented a risk management system that effectively controlled the growth of non-performing assets[28]. - The company has strengthened its risk management framework, emphasizing proactive management and maintaining a stable risk appetite[179]. - The company focused on strengthening its credit risk management framework, optimizing internal rating systems, and enhancing client and project entry standards to better control credit risk exposure[186]. Corporate Governance and Compliance - The financial report for 2021 was audited by Ernst & Young, confirming its compliance with both Chinese and international auditing standards[12]. - The company emphasizes the importance of compliance management and governance structure improvement to enhance operational effectiveness[45]. - The company is committed to improving its internal control and compliance management to enhance risk management levels[34]. Social Responsibility - The company donated over RMB 20 million to poverty alleviation efforts and helped sell agricultural products worth over RMB 12 million in 2021[30]. Digital Transformation - The company is advancing its digital transformation with the establishment of a dedicated data governance committee and the creation of a proprietary database for non-performing assets[34]. - The company initiated a new core system project in 2021 as part of its "Digital Xinda" information technology strategy[170]. Employee Development - In 2021, the company conducted over 2,900 training sessions with more than 330,000 participants, enhancing employee capabilities to support sustainable development[178]. - The employee distribution as of December 2021 included 88.7% from mainland China and 11.3% from Hong Kong and Macau[175].

Financial Performance - The company reported a total revenue of RMB 10.5 billion for the first half of 2021, representing a year-on-year increase of 15%[11]. - The net profit attributable to shareholders for the same period was RMB 3.2 billion, reflecting a growth of 20% compared to the previous year[11]. - Total revenue for the six months ended June 30, 2021, was RMB 41,401.6 million, a decrease of 9.4% compared to RMB 45,819.9 million in the same period of 2020[12]. - Net profit attributable to shareholders for the period was RMB 6,687.4 million, an increase of 5.5% from RMB 6,340.7 million in the previous year[12]. - The company reported a net profit of RMB 41,401.6 million for the first half of 2021, a decrease of 23.4% from RMB 54,137.4 million in the same period of 2020[77]. - The pre-tax profit for the first half of 2021 was RMB 6,987.0 million, representing a pre-tax profit margin of 22.1%, consistent with the same margin in 2020[52]. Asset and Liability Management - The total assets of the company reached RMB 150 billion as of June 30, 2021, an increase of 10% from the end of 2020[11]. - The total assets as of June 30, 2021, amounted to RMB 1,604,243.4 million, an increase of 4.7% from RMB 1,531,817.5 million year-over-year[13]. - The total liabilities increased to RMB 1,408,408.7 million, compared to RMB 1,339,643.1 million in the same period last year, marking a rise of 5.1%[13]. - The equity attributable to shareholders was RMB 172,822.4 million, an increase of 3.9% from RMB 167,200.0 million year-over-year[13]. - The total liabilities of the group as of June 30, 2021, were RMB 1,324,465.4 million, an increase from RMB 1,248,494.8 million at the end of 2020[69]. Investment and Development - The company is investing RMB 500 million in new technology development aimed at enhancing asset management capabilities[11]. - The company plans to launch a new financial product in Q4 2021, targeting a market size of RMB 2 billion[11]. - The company is exploring potential mergers and acquisitions to strengthen its position in the asset management sector[11]. - The company aims to enhance its core business and compliance management to ensure sustainable development amidst increasing competition in the non-performing asset market[18]. Risk Management - Risk management strategies have been enhanced, focusing on mitigating impacts from the ongoing COVID-19 pandemic[11]. - The company is committed to risk prevention and management, aligning with regulatory requirements to address financial risks[18]. - The company emphasizes a risk management philosophy of "proactive management and safeguarding the bottom line," maintaining overall asset quality stability[147]. - The company has established a comprehensive risk management system covering major risk categories, continuously improving its policies[150]. Market and Economic Outlook - The management has provided a positive outlook for the second half of 2021, expecting a revenue growth of 12% to 15%[11]. - The economic environment remains complex, with challenges in the non-performing asset industry, but the company maintains strategic focus and operational stability[19]. - The Chinese economy showed resilience with a GDP growth of 12.7% year-on-year in the first half of 2021, supporting the company's performance[17]. Employee and Corporate Governance - As of June 30, 2021, the company had 12,783 employees, with 10,934 in mainland China and 1,849 in Hong Kong and Macau[142]. - The board consists of 12 members, with independent non-executive directors making up one-third of the total[190]. - The company emphasizes compliance with corporate governance principles and enhances its risk management framework[187]. Shareholder and Dividend Information - The company approved a cash dividend of 1.041 RMB per 10 shares for the 2020 fiscal year, totaling approximately 3.973 billion RMB[200]. - The company will not declare an interim dividend for 2021 and will not convert capital reserves into share capital[200]. - The major shareholder, the Ministry of Finance, holds approximately 58.00% of the total issued shares[168].

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].