Core Viewpoint - Guoyin Financial Leasing's stock price increased by over 6% during trading, with a current price of HKD 1.80 and a trading volume of HKD 123 million. The company reported a mixed performance in its mid-year results for 2025, with total revenue decreasing slightly while net profit showed significant growth due to non-recurring income [1]. Financial Performance - Total revenue for the first half of 2025 was approximately CNY 12.045 billion, a year-on-year decrease of 3.54% [1]. - Total income and other earnings amounted to approximately CNY 14.664 billion, reflecting a year-on-year increase of 7.69% [1]. - Net profit reached approximately CNY 2.401 billion, representing a year-on-year growth of 27.63% [1]. - Earnings per share were reported at CNY 0.19 [1]. Business Segments - The company is experiencing growth in its business structure, particularly in green energy and high-end equipment leasing, as well as inclusive finance vehicle leasing [1]. - The aircraft leasing segment has shown operational resilience, while the shipping leasing business experienced a slight decline due to short-term fluctuations in shipping indices [1]. - Overall, the company's asset quality remains stable, providing a safety margin for business transformation [1]. Market Outlook - The company is positioned for a value re-evaluation opportunity due to the resonance of its asset and liability sides, with a high safety margin on the liability side [1]. - The potential for a decrease in operational costs is anticipated as the Federal Reserve shows an open attitude towards interest rate cuts, with an increased likelihood of cuts in the fourth quarter [1]. - The company has innovated its financing models, resulting in a significant reduction of 31.4% in interest expenses during the first half of the year, which will further optimize costs during the interest rate cut cycle [1].

Core Viewpoint - Guoyin Financial Leasing (01606) reported a mixed performance in its 2025 interim results, with total revenue declining slightly while net profit showed significant growth due to non-recurring income [1] Financial Performance - Total revenue for the first half of 2025 was approximately 12.045 billion yuan, a year-on-year decrease of 3.54% [1] - Total income and other revenues amounted to about 14.664 billion yuan, reflecting a year-on-year increase of 7.69% [1] - Net profit reached approximately 2.401 billion yuan, representing a year-on-year growth of 27.63% [1] - Earnings per share were reported at 0.19 yuan [1] Business Segments - The company’s business structure is continuously optimizing, with rapid growth in green energy and high-end equipment leasing, as well as inclusive finance vehicle leasing [1] - The aircraft leasing business maintained operational resilience, while the shipping leasing business experienced a slight decline due to short-term fluctuations in shipping indices [1] Asset Quality and Market Conditions - Overall, the company’s asset quality remains stable, providing a safety margin for business transformation [1] - The company is positioned for a value reassessment opportunity due to the resonance of liabilities on both ends, with a high safety margin in current investments [1] - The potential for a Federal Reserve interest rate cut could drive down operational costs for the company [1] Cost Management - The company has innovated its financing model, resulting in a significant reduction of interest expenses by 31.4% in the first half of the year [1] - The optimization of costs is expected to become more pronounced during the interest rate cut cycle [1]

Core Viewpoint - Guoyin Financial Leasing (01606) has seen a stock price increase of over 6% following the announcement of its mid-term results, which showed a significant net profit growth of 27.63% year-on-year, indicating potential for improved asset yield due to the onset of a rate cut cycle [1][2] Group 1: Financial Performance - Total revenue for the first half of 2025 was approximately 12.045 billion, a decrease of 3.54% year-on-year [1] - Total income and other earnings amounted to about 14.664 billion, reflecting a year-on-year increase of 7.69% [1] - Net profit reached approximately 2.401 billion, marking a year-on-year growth of 27.63% [1] - Earnings per share stood at 0.19 [1] Group 2: Business Segments - The company has optimized its business structure, with rapid growth in green energy and high-end equipment leasing, as well as inclusive finance vehicle leasing [1] - The aircraft leasing business has shown operational resilience, while the shipping leasing business experienced a slight decline due to short-term fluctuations in shipping indices [1] Group 3: Market Outlook - The company is positioned for a value reassessment as both asset and liability sides are resonating positively, with a high safety margin on the liability side [2] - The potential for a rate cut by the Federal Reserve could lead to a reduction in operating costs for the company [2] - Interest expenses were significantly reduced by 31.4% in the first half of the year, and further optimization is expected during the rate cut cycle [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 備註： 致：香港交易及結算所有限公司 公司名稱: 國銀金融租賃股份有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01606 | 說明 | H股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,769,594,000 | RMB | | 1 | RMB | | 2,769,594,000 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 2,769,594,000 | RMB | | 1 | RMB | | 2,769,594,000 | ...

Core Viewpoint - Guoyin Financial Leasing Co., Ltd. (国银金租) reported steady growth in its mid-year performance for 2025, achieving a revenue of 14.664 billion yuan, a year-on-year increase of 7.7%, and a net profit of 2.401 billion yuan, up 27.6%, marking the highest historical figure for the same period [1] Group 1: Financial Performance - In the first half of 2025, the total assets reached 417.727 billion yuan, with a return on equity (ROE) of 11.73% and a return on assets (ROA) of 1.17%, indicating continuous improvement in profitability [1] - The company maintained high-level sovereign credit ratings, with Moody's at A1, S&P at A, and Fitch at A [1] Group 2: Business Segments - In aircraft leasing, the fleet size reached 517 aircraft, including 312 owned and 205 on order, ranking 10th globally among leasing companies, with operations covering 42 countries and regions [1] - In maritime leasing, the company led the first global joint financing lease for offshore production storage and unloading vessels (FPSO) and developed financing leases for floating LNG production storage and unloading units (FLNG) [2] - In inclusive finance, the company launched a diversified product system covering various sectors, with over 10 billion yuan disbursed benefiting more than 40,000 small and micro customers [2] Group 3: Green Energy and Risk Management - In green energy and high-end equipment leasing, the company invested nearly 23.5 billion yuan in the first half of 2025, with a total installed capacity of 13.8 GW in renewable energy power stations [3] - The asset quality remained stable with a non-performing asset ratio of 0.63%, and the provision coverage ratio for non-performing assets was 540.05%, indicating strong risk mitigation capabilities [3] Group 4: Capital Management - The company successfully issued 5 billion yuan in 3-year financial bonds and raised 400 million USD in 5-year fixed-rate and 300 million USD in 5-year floating-rate senior bonds in the global market [3] Group 5: Recognition and Future Outlook - Guoyin Financial Leasing was listed in the Forbes Global 2000 and the Fortune China 500 for three consecutive years, reflecting a positive development trend [4] - The company plans to continue its strategy of "seeking progress while maintaining stability" in the second half of 2025, focusing on serving the real economy and creating long-term value for stakeholders [4]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 國銀金融租賃股份有限公司 * CHINA DEVELOPMENT BANK FINANCIAL LEASING CO., LTD.* 董事會謹此澄清，臨時股東大會文件由財務印刷商凸版美林財經印刷有限公司 （「凸版」）在未經本公司正當授權、知曉或取得本公司任何形式的批准的情況下擅 自於2025年8月29日分別於16時33分、16時37分及16時39分上載至「披露易」網 站。此次文件的發佈完全是由於凸版嚴重的行政錯誤所造成，而擬於臨時股東大 會審議的對國銀航空增資事項尚在論證中。本公司認為凸版的行為已構成嚴重違 約，目前正在尋求法律建議，以尋求相應的執行方案。 本公司謹就可能造成的任何混亂致以由衷的歉意，並向持分者保證本公司正嚴肅 對待此事。此外，本公司正要求該等臨時股東大會文件從「披露易」網站取消。 臨時股東大會取消及取消暫停辦理股份過戶登記 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1606 ...

Core Viewpoint - Guoyin Financial Leasing (01606.HK) reported a year-on-year increase in revenue and net profit for the first half of 2025, indicating strong financial performance and stable asset quality [1] Financial Performance - Operating revenue for the first half of 2025 reached RMB 14.664 billion, a year-on-year growth of 7.7% [1] - Net profit amounted to RMB 2.401 billion, reflecting a year-on-year increase of 27.6% [1] - Annualized average return on total assets (ROA) was 1.17%, up 0.33 percentage points from the same period last year [1] - Annualized average return on equity (ROE) stood at 11.73%, an increase of 1.69 percentage points year-on-year [1] Asset Quality - The non-performing asset ratio was 0.63%, consistently maintained below 1% since the company's listing, indicating stable asset quality [1] - The provision coverage ratio for non-performing assets related to financing leases was 540.05%, demonstrating a high level of risk compensation [1] - The capital adequacy ratio was 13.10%, up 0.15 percentage points from the end of the previous year [1]

Core Insights - The company reported a total revenue of approximately 12.045 billion, a year-on-year decrease of 3.54% [1] - Total income and other earnings amounted to about 14.664 billion, reflecting a year-on-year increase of 7.69% [1] - Net profit reached approximately 2.401 billion, showing a year-on-year growth of 27.63% [1] - Earnings per share stood at 0.19 yuan [1] Revenue Analysis - The decrease in total revenue was primarily attributed to a decline in financing lease yields and a lower BDI index compared to the same period last year [1] - Both financing lease income and operating lease income experienced a decline [1] Profitability Factors - The growth in net profit was driven by the company's proactive measures to reduce liquidity reserves and strengthen cost control on funds [1] - A decrease in borrowing scale and interest rates led to reduced interest expenses [1] - The company actively sought aircraft insurance compensation, increased asset disposal efforts, and experienced a rise in foreign exchange gains, contributing to higher other income and earnings [1]

[Financial Summary](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Condensed Consolidated Income Statement Summary](index=2&type=section&id=1%20Condensed%20Consolidated%20Income%20Statement%20Summary) In H1 2025, total revenue decreased by 3.5% to **RMB 12.045 billion**, but net profit rose 27.6% to **RMB 2.401 billion**, driven by lower interest expenses and increased other income Condensed Consolidated Income Statement Summary | Indicator (RMB thousands) | H1 2025 | H1 2024 | YoY Change | | :------------------------ | :----------- | :----------- | :------- | | Finance Lease Income | 5,041,156 | 5,373,097 | -6.2% | | Operating Lease Income | 7,003,992 | 7,113,496 | -1.5% | | **Total Revenue** | **12,045,148** | **12,486,593** | **-3.5%** | | Net Investment Income | 34,201 | 84,619 | -59.6% | | Other Income, Gains or Losses | 2,585,045 | 1,045,821 | +147.2% | | **Total Income and Other Gains** | **14,664,394** | **13,617,033** | **+7.7%** | | Total Expenses | (11,627,511) | (11,055,965) | +5.2% | | Profit Before Income Tax | 3,036,883 | 2,561,068 | +18.6% | | **Profit for the Period** | **2,401,029** | **1,881,265** | **+27.6%** | | Basic and Diluted Earnings Per Share (RMB) | 0.19 | 0.15 | +26.7% | - In H1 2025, the operating revenue structure significantly changed: finance lease income accounted for **34.4%** (down 5.0 percentage points YoY), operating lease income **47.8%** (down 4.5 percentage points YoY), and other income, gains or losses **17.6%** (up 9.9 percentage points YoY)[6](index=6&type=chunk) - Within the operating expense structure, interest expenses accounted for **39.7%** (down 21.1 percentage points YoY), depreciation and amortization **33.1%** (up 2.2 percentage points YoY), and impairment losses **15.6%** (up 18.0 percentage points YoY)[8](index=8&type=chunk) [Condensed Consolidated Statement of Financial Position Summary](index=4&type=section&id=2%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20Summary) As of June 30, 2025, total assets increased by 2.9% to **RMB 417.727 billion**, with total equity growing 3.4% to **RMB 41.621 billion**, reflecting changes in asset and liability composition Condensed Consolidated Statement of Financial Position Summary | Indicator (RMB thousands) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :------------------------ | :------------ | :------------- | :----- | | **Total Assets** | **417,727,294** | **405,850,330** | **+2.9%** | | Of which: Cash and Bank Balances | 55,861,526 | 43,670,649 | +27.9% | | Finance Lease Receivables | 199,983,886 | 202,099,637 | -1.0% | | Property and Equipment | 131,599,143 | 133,593,877 | -1.5% | | **Total Liabilities** | **376,106,272** | **365,586,571** | **+2.9%** | | Of which: Borrowings | 313,383,794 | 309,814,063 | +1.2% | | Bonds Payable | 31,964,802 | 27,072,912 | +18.1% | | **Total Equity** | **41,621,022** | **40,263,759** | **+3.4%** | | Net Assets Per Share (RMB) | 3.29 | 3.18 | +3.5% | - As of June 30, 2025, total assets comprised **47.9%** finance lease receivables, **31.5%** property and equipment, and **20.6%** other assets[12](index=12&type=chunk)[13](index=13&type=chunk) - As of June 30, 2025, total liabilities consisted of **83.3%** borrowings, **8.5%** bonds payable, and **8.2%** other liabilities[14](index=14&type=chunk)[15](index=15&type=chunk) [Key Financial and Regulatory Indicators](index=6&type=section&id=Key%20Financial%20and%20Regulatory%20Indicators) In H1 2025, the Group's profitability and asset quality improved, capital adequacy met requirements, despite a Fitch rating downgrade Key Financial and Regulatory Indicators | Indicator | H1 2025 | H1 2024 | FY 2024 | | :--------------------------------- | :----------- | :----------- | :--------- | | Return on Average Total Assets | 1.17% | 0.84% | 1.10% | | Return on Average Equity | 11.73% | 10.04% | 11.61% | | Cost-to-Income Ratio | 9.49% | 8.77% | 9.35% | | Non-Performing Asset Ratio | 0.63% | 0.48% | 0.56% | | Non-Performing Finance Lease Asset Ratio | 0.97% | 0.72% | 0.80% | | Financial Leverage Ratio | 7.80 times | 9.06 times | 8.25 times | - In H1 2025, the annualized **Return on Average Total Assets (ROA)** was **1.17%** (up 0.33 percentage points YoY), and **Return on Average Equity (ROE)** was **11.73%** (up 1.69 percentage points YoY), primarily due to stable net profit growth[18](index=18&type=chunk) Regulatory Indicators | Regulatory Indicator | Regulatory Requirement | June 30, 2025 | Dec 31, 2024 | Dec 31, 2023 | | :--------------------------------------- | :------- | :------------ | :------------- | :------------- | | Core Tier 1 Capital Adequacy Ratio | ≥7.5% | 10.66% | 10.49% | 9.96% | | Tier 1 Capital Adequacy Ratio | ≥8.5% | 10.66% | 10.49% | 9.96% | | Capital Adequacy Ratio | ≥10.5% | 13.10% | 12.95% | 12.47% | | Provision Coverage Ratio for Non-Performing Finance Lease Assets | ≥100% | 540.05% | 551.24% | 547.72% | - In April 2025, Fitch downgraded China's sovereign credit rating from A+ to A, leading to a corresponding downgrade of CDB Leasing's rating from A+ to A, with a stable outlook[17](index=17&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Operating Environment](index=8&type=section&id=1%20Operating%20Environment) In H1 2025, global economic growth faced uncertainties, with IMF forecasting 3.0% growth, while China's GDP grew 5.3%, demonstrating resilience and strengthening the financial leasing sector's service to the real economy - In July 2025, the International Monetary Fund (IMF) raised its 2025 global economic growth forecast to **3.0%**, yet the global economy still faces risks such as trade tensions, spillover effects from slowing growth, and extreme weather[23](index=23&type=chunk) - In H1 2025, China's GDP grew by **5.3%** year-on-year, with the economy operating steadily and improving, supported by strengths in technological innovation and advanced manufacturing to achieve full-year growth targets[23](index=23&type=chunk) - As of the end of 2024, the total asset scale of China's financial leasing companies continued to grow, with the industry focusing on green finance, technology finance, and new infrastructure, enhancing its ability to serve the real economy[24](index=24&type=chunk) [H1 2025 Operating Review](index=9&type=section&id=2025%E5%B9%B4%E4%B8%8A%E5%8D%8A%E5%B9%B4%E7%B6%93%E7%87%9F%E5%9B%9E%E9%A1%A7) In H1 2025, the Group adhered to a 'seeking progress while maintaining stability' approach, achieving new milestones in operations, with improving key indicators, optimized business structure, enhanced internal management, and an upgraded regulatory rating from 3A to 2B - The Group adhered to the general principle of 'seeking progress while maintaining stability', strengthening its foundation in 'risk prevention and compliance', focusing on 'structural adjustment, enhanced management, and promoting development', and empowering through 'digital intelligence'[25](index=25&type=chunk) H1 2025 Operating Review | Indicator | H1 2025 | YoY Change | | :--------------------------------------- | :----------------- | :-------------- | | Total Assets | RMB 417.727 billion | +2.9% | | Operating Revenue | RMB 14.664 billion | +7.7% | | Net Profit | RMB 2.401 billion | +27.6% | | Annualized Return on Average Total Assets (ROA) | 1.17% | +0.33 percentage points | | Annualized Return on Average Equity (ROE) | 11.73% | +1.69 percentage points | | Non-Performing Asset Ratio | 0.63% | Stable | | Provision Coverage Ratio for Non-Performing Finance Lease Assets | 540.05% | Maintained high | | Capital Adequacy Ratio | 13.10% | +0.15 percentage points | - Business structure continued to optimize, including deepening domestic and international aviation leasing markets, supporting domestic large aircraft industry development, accelerating non-core fleet disposal, integrating into national regional strategies, leading the world's first offshore FPSO joint finance lease, expanding inclusive finance products, and increasing green energy and high-end equipment leasing placements[27](index=27&type=chunk)[28](index=28&type=chunk) - Internal management efficiency improved, including optimizing capital allocation, multi-pronged efforts to reduce debt costs, strengthening risk assessment in key areas, enhancing internal control, and upgrading the regulatory rating from 3A to 2B from the previous year[29](index=29&type=chunk) [Condensed Consolidated Income Statement Analysis](index=11&type=section&id=3%20Condensed%20Consolidated%20Income%20Statement%20Analysis) In H1 2025, total income and other gains increased by 7.7%, and net profit grew by 27.6%, primarily due to reduced interest expenses and increased other income, despite a 3.5% decline in total revenue - In H1 2025, the Group's total income and other gains amounted to **RMB 14.664 billion**, a 7.7% year-on-year increase, with net profit reaching **RMB 2.401 billion**, up 27.6% year-on-year[30](index=30&type=chunk) - Net profit growth was primarily driven by proactive reduction of liquidity reserves, strengthened capital cost control, and decreased interest expenses due to lower borrowing scale and rates, alongside increased other income from aircraft insurance compensation, enhanced asset disposal, and higher exchange gains[30](index=30&type=chunk) - Total revenue decreased by **3.5%**, mainly due to a decline in finance lease yields and a lower BDI index compared to the same period last year, resulting in reduced finance lease and operating lease income[32](index=32&type=chunk) [Finance Lease Income](index=12&type=section&id=3.2.1%20Finance%20Lease%20Income) In H1 2025, finance lease income decreased by 6.2% to **RMB 5.041 billion**, mainly due to lower yields, though aircraft, inclusive finance, and green energy leasing saw growth Finance Lease Income by Business Segment | Business Segment (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :------------------------------ | :----------- | :----------- | :----- | | Aircraft Leasing | 13.6 | 2.8 | +385.7% | | Regional Development Leasing | 1,492.5 | 2,356.5 | -36.7% | | Shipping Leasing | 624.5 | 590.9 | +5.7% | | Inclusive Finance | 1,052.3 | 922.5 | +14.1% | | Green Energy and High-End Equipment Leasing | 1,858.3 | 1,500.4 | +23.9% | | **Total** | **5,041.2** | **5,373.1** | **-6.2%** | - Aircraft leasing income increased by **385.7%**, primarily due to growth in the asset scale and yield of aircraft finance lease business[34](index=34&type=chunk) - Regional development leasing income decreased by **36.7%**, primarily due to business transformation leading to a reduction in asset scale and yield[34](index=34&type=chunk) - Inclusive finance income increased by **14.1%**, primarily due to increased vehicle leasing placements and an overall rise in yield[35](index=35&type=chunk) - Green energy and high-end equipment leasing income increased by **23.9%**, primarily due to increased placements in new energy and emerging industries, leading to a larger asset scale[35](index=35&type=chunk) [Operating Lease Income](index=13&type=section&id=3.2.2%20Operating%20Lease%20Income) In H1 2025, operating lease income decreased by 1.5% to **RMB 7.004 billion**, mainly due to a lower BDI index, despite growth in aircraft, regional development, inclusive finance, and green energy leasing Operating Lease Income by Business Segment | Business Segment (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :------------------------------ | :----------- | :----------- | :----- | | Aircraft Leasing | 4,313.8 | 4,179.8 | +3.2% | | Regional Development Leasing | 63.3 | 53.6 | +18.1% | | Shipping Leasing | 2,011.7 | 2,469.0 | -18.5% | | Inclusive Finance | 573.5 | 386.0 | +48.6% | | Green Energy and High-End Equipment Leasing | 41.7 | 25.1 | +66.1% | | **Total** | **7,004.0** | **7,113.5** | **-1.5%** | - Shipping leasing income decreased by **18.5%**, primarily because operating lease income for vessels is linked to the BDI index, which was lower than the same period last year[38](index=38&type=chunk) - Inclusive finance operating lease income increased by **48.6%**, primarily due to an increase in the asset scale of vehicle operating leases[39](index=39&type=chunk) - Green energy and high-end equipment operating lease income increased by **66.1%**, primarily due to an increase in asset scale[39](index=39&type=chunk) [Net Investment Income](index=14&type=section&id=3.2.3%20Net%20Investment%20Income) In H1 2025, net investment income significantly decreased by 59.6% to **RMB 34.2 million**, primarily because the Group no longer held government bonds Net Investment Income | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :----------------------- | :----------- | :----------- | :----- | | Net Investment Income | 34.2 | 84.6 | -59.6% | - The decrease in net investment income was primarily due to the Group no longer holding government bonds in H1 2025[40](index=40&type=chunk) [Other Income, Gains or Losses](index=15&type=section&id=3.2.4%20Other%20Income%2C%20Gains%20or%20Losses) In H1 2025, other income, gains or losses significantly increased by 147.2% to **RMB 2.585 billion**, primarily due to higher exchange gains, aircraft insurance compensation, and asset disposal income Other Income, Gains or Losses | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :----------------------- | :----------- | :----------- | :------- | | Other Income, Gains or Losses | 2,585.0 | 1,045.8 | +147.2% | - The increase in other income, gains or losses was primarily due to higher exchange gains, aircraft insurance compensation income, and asset disposal income[41](index=41&type=chunk) [Cost and Expenses](index=15&type=section&id=3.3%20Cost%20and%20Expenses) In H1 2025, total expenses increased by 5.2% to **RMB 11.628 billion**, mainly due to significant increases in impairment losses and depreciation and amortization, despite reduced interest and staff costs Cost and Expenses | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :----------------------- | :----------- | :----------- | :------- | | Depreciation and Amortization | (3,850.3) | (3,417.0) | +12.7% | | Staff Costs | (239.3) | (263.5) | -9.2% | | Interest Expenses | (4,617.1) | (6,727.7) | -31.4% | | Other Operating Expenses | (1,096.6) | (882.4) | +24.3% | | Impairment Losses | (1,811.1) | 261.0 | -793.9% | | **Total Expenses** | **(11,627.5)** | **(11,055.9)** | **+5.2%** | - Depreciation and amortization increased by **12.7%**, primarily due to the growth in operating lease asset scale[43](index=43&type=chunk) - Staff costs decreased by **9.2%**, primarily due to adjustments in personnel structure[44](index=44&type=chunk) - Interest expenses decreased by **31.4%**, primarily due to a reduction in both average borrowing scale and financing cost rates[45](index=45&type=chunk) - Impairment losses shifted from a reversal in the prior year to a loss, primarily due to increased credit risk in certain existing projects and updates to macroeconomic parameters in the impairment model[47](index=47&type=chunk) [Profit Before Income Tax](index=16&type=section&id=3.4%20Profit%20Before%20Income%20Tax) In H1 2025, profit before income tax increased by 18.6% to **RMB 3.037 billion** Profit Before Income Tax | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :----------------------- | :----------- | :----------- | :------- | | Profit Before Income Tax | 3,036.9 | 2,561.1 | +18.6% | [Income Tax Expenses](index=16&type=section&id=3.5%20Income%20Tax%20Expenses) In H1 2025, income tax expenses decreased by 6.5% to **RMB 636 million**, primarily due to an increased proportion of profit from lower-taxed subsidiaries Income Tax Expenses | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :----------------------- | :----------- | :----------- | :------- | | Income Tax Expenses | (635.9) | (679.8) | -6.5% | - The decrease in income tax expenses was primarily due to an increased proportion of profit from lower-taxed subsidiaries[49](index=49&type=chunk) [Condensed Consolidated Statement of Financial Position Analysis](index=17&type=section&id=4%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2025, total assets increased by 2.9% to **RMB 417.727 billion**, primarily driven by cash and bank balances, with total liabilities also growing 2.9% to support asset expansion Condensed Consolidated Statement of Financial Position Analysis | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :-------- | | **Total Assets** | **417,727.3** | **405,850.3** | **+2.9%** | | Cash and Bank Balances | 55,861.5 | 43,670.6 | +27.9% | | Finance Lease Receivables | 199,983.9 | 202,099.6 | -1.0% | | Prepayments | 15,070.4 | 13,535.4 | +11.3% | | Property and Equipment | 131,599.1 | 133,593.9 | -1.5% | | **Total Liabilities** | **376,106.3** | **365,586.5** | **+2.9%** | | Borrowings | 313,383.8 | 309,814.1 | +1.2% | | Bonds Payable | 31,964.8 | 27,072.9 | +18.1% | | Total Equity | 41,621.0 | 40,263.8 | +3.4% | - Total assets increased by **2.9%**, primarily driven by growth in cash and bank balances[51](index=51&type=chunk) - Total liabilities increased by **2.9%**, primarily to support the growth in asset scale[59](index=59&type=chunk) [Cash and Bank Balances](index=18&type=section&id=4.1.1%20Cash%20and%20Bank%20Balances) As of June 30, 2025, cash and bank balances increased by 27.9% to **RMB 55.862 billion**, primarily due to increased liquidity preparedness for business development Cash and Bank Balances | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Cash and Bank Balances | 55,861.5 | 43,670.6 | +27.9% | - The increase in cash and bank balances was primarily due to the Group's business development needs and increased liquidity preparedness[52](index=52&type=chunk) [Finance Lease Receivables](index=18&type=section&id=4.1.2%20Finance%20Lease%20Receivables) As of June 30, 2025, finance lease receivables decreased by 1.0% to **RMB 199.984 billion**, primarily due to intense market competition, declining project yields, and a slowdown in placement progress Finance Lease Receivables | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Finance Lease Receivables | 199,983.9 | 202,099.6 | -1.0% | - The decrease in finance lease receivables was primarily due to intense market competition, declining project yields, and a slowdown in the Group's finance lease placement progress[53](index=53&type=chunk) [Prepayments](index=19&type=section&id=4.1.3%20Prepayments) As of June 30, 2025, prepayments increased by 11.3% to **RMB 15.070 billion**, primarily due to payments for new aircraft, vessel, and vehicle purchase orders Prepayments | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Prepayments | 15,070.4 | 13,535.4 | +11.3% | - The increase in prepayments was primarily due to payments for new aircraft, vessel, and vehicle purchase orders[54](index=54&type=chunk) [Property and Equipment](index=19&type=section&id=4.1.4%20Property%20and%20Equipment) As of June 30, 2025, property and equipment decreased by 1.5% to **RMB 131.600 billion**, primarily due to reduced net values of operating lease equipment and self-use property from depreciation charges Property and Equipment | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Equipment for Operating Leases | 131,043.7 | 133,022.7 | -1.5% | | Property and Equipment for Own Use | 555.4 | 571.2 | -2.8% | | **Property and Equipment – Carrying Value** | **131,599.1** | **133,593.9** | **-1.5%** | - The decrease in the net carrying value of equipment for operating leases was primarily due to depreciation charges, despite stable growth in original asset value[55](index=55&type=chunk) [Other Assets](index=19&type=section&id=4.1.5%20Other%20Assets) As of June 30, 2025, other assets increased by 16.3% to **RMB 9.273 billion**, primarily due to an expanded scale of leasing asset placements, leading to higher deductible value-added tax Other Assets | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :------- | | Other Assets | 9,272.5 | 7,969.5 | +16.3% | - The increase in other assets was primarily due to an expanded scale of leasing asset placements, leading to higher deductible value-added tax[57](index=57&type=chunk) [Lease Assets](index=20&type=section&id=4.2%20Lease%20Assets) As of June 30, 2025, the Group's finance lease related assets and operating lease assets both decreased by 1.0% and 1.5% respectively, compared to the end of the previous year Lease Assets | Lease Assets (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :-------------------------- | :------------ | :------------- | :----- | | Finance Lease Related Assets | 199,983.9 | 202,099.6 | -1.0% | | Operating Lease Assets | 132,081.6 | 134,081.1 | -1.5% | [Borrowings](index=20&type=section&id=4.3.1%20Borrowings) As of June 30, 2025, borrowings increased by 1.2% to **RMB 313.384 billion**, primarily due to increased financing to support business scale development Borrowings | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Borrowings | 313,383.8 | 309,814.1 | +1.2% | - The increase in borrowings was primarily due to increased financing to support business scale development[60](index=60&type=chunk) [Bonds Payable](index=21&type=section&id=4.3.2%20Bonds%20Payable) As of June 30, 2025, bonds payable increased by 18.1% to **RMB 31.965 billion**, primarily because new bond issuances in H1 2025 exceeded maturing repayments Bonds Payable | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :------- | | Bonds Payable | 31,964.8 | 27,072.9 | +18.1% | - The increase in bonds payable was primarily due to new bond issuances in H1 2025 exceeding the volume of maturing repayments[61](index=61&type=chunk) [Other Liabilities](index=21&type=section&id=4.3.3%20Other%20Liabilities) As of June 30, 2025, other liabilities decreased by 0.7% to **RMB 20.558 billion**, primarily due to a reduction in interest payable Other Liabilities | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | Change Rate | | :----------------------- | :------------ | :------------- | :----- | | Other Liabilities | 20,558.5 | 20,710.4 | -0.7% | - The decrease in other liabilities was primarily due to a reduction in interest payable[62](index=62&type=chunk) [Cash Flow Statement Analysis](index=21&type=section&id=5%20Cash%20Flow%20Statement%20Analysis) In H1 2025, net cash flow from operating activities significantly decreased by 81.1% due to reduced net increase in borrowings, while net cash outflow from investing activities decreased by 86.6%, and net cash inflow from financing activities increased due to bond issuances Cash Flow Statement Analysis | Indicator (RMB millions) | H1 2025 | H1 2024 | Change Rate | | :--------------------------------------- | :----------- | :----------- | :------- | | Net Cash Flow from Operating Activities | 12,153.1 | 64,403.0 | -81.1% | | Net Cash Flow Used in Investing Activities | (4,229.4) | (31,583.9) | -86.6% | | Net Cash Flow from (Used in) Financing Activities | 4,554.2 | (4,540.9) | +200.3% | | Net Increase in Cash and Cash Equivalents | 12,477.9 | 28,278.2 | -55.9% | - Net cash inflow from operating activities decreased by **81.1%**, primarily due to a reduction in the Group's net increase in borrowings[63](index=63&type=chunk) - Net cash outflow from investing activities decreased by **86.6%**, primarily due to a reduction in the Group's investment payments[63](index=63&type=chunk) - Net cash inflow from financing activities increased, primarily due to the Group's bond issuances leading to higher net cash inflows[63](index=63&type=chunk) [Business Segments](index=22&type=section&id=6%20Business%20Segments) In H1 2025, the Group's business transformation yielded significant results, with optimized segment structure, total leasing placements of **RMB 41.361 billion**, and notable growth in income and profit contributions from aircraft and green energy leasing - In H1 2025, the Group achieved total leasing business placements of **RMB 41.361 billion**, with **RMB 23.461 billion** in green energy and high-end equipment leasing, and **RMB 10.552 billion** in inclusive finance[64](index=64&type=chunk) Segment Assets | Segment Assets (RMB millions) | June 30, 2025 Amount | June 30, 2025 Share | Dec 31, 2024 Amount | Dec 31, 2024 Share | | :---------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Aircraft Leasing | 121,346.8 | 29.3% | 120,078.4 | 29.8% | | Regional Development Leasing | 76,363.7 | 18.4% | 87,567.7 | 21.7% | | Shipping Leasing | 67,435.9 | 16.3% | 64,739.8 | 16.0% | | Inclusive Finance | 36,388.2 | 8.8% | 33,959.9 | 8.4% | | Green Energy and High-End Equipment Leasing | 113,307.9 | 27.2% | 97,177.1 | 24.1% | | **Total** | **414,842.5** | **100.0%** | **403,522.9** | **100.0%** | Segment Income and Other Gains | Segment Income and Other Gains (RMB millions) | H1 2025 Amount | H1 2025 Share | H1 2024 Amount | H1 2024 Share | | :------------------------------------------ | :--------------- | :--------------- | :--------------- | :--------------- | | Aircraft Leasing | 5,886.7 | 40.1% | 4,555.0 | 33.5% | | Regional Development Leasing | 1,620.6 | 11.1% | 2,664.1 | 19.6% | | Shipping Leasing | 3,485.7 | 23.8% | 3,327.7 | 24.4% | | Inclusive Finance | 1,658.8 | 11.3% | 1,390.3 | 10.2% | | Green Energy and High-End Equipment Leasing | 2,012.6 | 13.7% | 1,679.9 | 12.3% | | **Total** | **14,664.4** | **100.0%** | **13,617.0** | **100.0%** | Segment Profit (Loss) Before Income Tax | Segment Profit (Loss) Before Income Tax (RMB millions) | H1 2025 Amount | H1 2024 Amount | | :--------------------------------------------------- | :--------------- | :--------------- | | Aircraft Leasing | 1,114.5 | (62.0) | | Regional Development Leasing | 481.4 | 1,206.0 | | Shipping Leasing | 326.4 | 437.9 | | Inclusive Finance | 486.8 | 443.9 | | Green Energy and High-End Equipment Leasing | 627.8 | 535.3 | | **Total** | **3,036.9** | **2,561.1** | [Aircraft Leasing](index=24&type=section&id=6.1%20Aircraft%20Leasing) In H1 2025, the Aircraft Leasing segment's total assets grew 1.1%, total income and other gains increased 29.2%, and profit before income tax rose significantly, driven by higher leasing income and aircraft insurance compensation - In H1 2025, global air travel demand was strong, with IATA forecasting global airline net profits to reach **USD 36 billion**[72](index=72&type=chunk) - The Group executed **12 transactions** involving **31 new and old aircraft and engines**, signed **USD 2.6 billion** in financing contracts, and expanded its customer network across **42 countries and regions**[73](index=73&type=chunk) - The Aircraft Leasing segment's total assets were **RMB 121.347 billion** (up 1.1% YoY), total income and other gains **RMB 5.887 billion** (up 29.2% YoY), and profit before income tax **RMB 1.115 billion** (an increase of **RMB 1.177 billion** from the prior year)[74](index=74&type=chunk) - As of June 30, 2025, the Group owned **517 aircraft** (**312 owned**, **205 on order**), with narrow-body aircraft accounting for **79%** and wide-body aircraft **18%** of the owned fleet[74](index=74&type=chunk)[75](index=75&type=chunk) - In H1 2025, the Group received approximately **USD 134 million** in insurance compensation for aircraft stranded in Russia[83](index=83&type=chunk) [Regional Development Leasing](index=29&type=section&id=6.2%20Regional%20Development%20Leasing) In H1 2025, the Regional Development Leasing segment saw new business placements of **RMB 1.760 billion**, but total assets, income, and profit before tax significantly declined, reflecting the Group's ongoing business transformation to reduce this segment's asset scale - In H1 2025, the Group's Regional Development Leasing segment achieved new business placements of **RMB 1.760 billion**[84](index=84&type=chunk) - This segment's total assets were **RMB 76.364 billion** (down 12.8% YoY), income and other gains **RMB 1.621 billion** (down 39.2% YoY), and profit before income tax **RMB 481 million** (down 60.1% YoY)[85](index=85&type=chunk) - The Group focused on key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, Greater Bay Area, Yangtze River Economic Belt, and Yellow River Basin, providing services to **26 provinces, autonomous regions, and municipalities** nationwide[84](index=84&type=chunk) [Shipping Leasing](index=29&type=section&id=6.3%20Shipping%20Leasing) In H1 2025, the shipping market was fragmented due to geopolitical factors, with the Shipping Leasing segment's total assets growing 4.2% and income 4.7%, but profit before tax decreased 25.5% due to increased impairment losses from rising credit risk and lower BDI index affecting operating lease income - In H1 2025, the shipping market faced increased uncertainty due to US tariff policies and geopolitical factors, with market charter rates for bulk carriers, product tankers, and LNG carriers under pressure[86](index=86&type=chunk) - The Group led the world's first offshore FPSO joint finance lease, developed FLNG joint leasing business, and completed the delivery and commencement of leasing for **4 newbuild vessels**[87](index=87&type=chunk) - The Shipping Leasing segment's total assets were **RMB 67.436 billion** (up 4.2% YoY), income and other gains **RMB 3.486 billion** (up 4.7% YoY), and profit before income tax **RMB 326 million** (down 25.5% YoY)[89](index=89&type=chunk) - The decrease in profit before income tax was mainly due to increased impairment losses from rising credit risk in leasing assets, coupled with a year-on-year decline in the BDI index affecting operating lease income[89](index=89&type=chunk) - As of June 30, 2025, the Group owned **252 operating vessels** (**37 finance lease**, **215 operating lease**), with an average age of **7.3 years**, and **12 vessels under construction**[87](index=87&type=chunk)[88](index=88&type=chunk) [Inclusive Finance](index=31&type=section&id=6.4%20Inclusive%20Finance) In H1 2025, the Inclusive Finance segment's total assets grew 7.2%, income and other gains increased 19.3%, and profit before tax rose 9.7%, primarily due to steady growth in passenger vehicle leasing placements and optimized segment revenue structure - In H1 2025, the Group's Inclusive Finance segment achieved new business placements of **RMB 10.552 billion**[90](index=90&type=chunk) - The Inclusive Finance segment's total assets were **RMB 36.388 billion** (up 7.2% YoY), income and other gains **RMB 1.659 billion** (up 19.3% YoY), and profit before income tax **RMB 487 million** (up 9.7% YoY)[91](index=91&type=chunk) - The increase in profit before income tax was primarily due to the Group's steady increase in passenger vehicle leasing placements, optimizing the segment's revenue structure[91](index=91&type=chunk) [Vehicle Leasing](index=32&type=section&id=6.4.1%20Vehicle%20Leasing) In H1 2025, China's auto production and sales grew, with new energy vehicle sales significantly increasing, while the Group's vehicle leasing placements steadily rose to over **70,000 units**, serving over **40,000 SME clients**, and related assets grew 15.7% - In H1 2025, national automobile production and sales reached **15.621 million** and **15.653 million units** respectively (up 12.5% and 11.4% YoY), with new energy vehicle sales reaching **6.937 million units** (up 40.3% YoY)[92](index=92&type=chunk) - The Group placed over **70,000 vehicles**, providing financing support to over **40,000 end customers**[92](index=92&type=chunk) - Assets related to vehicle leasing business amounted to **RMB 27.495 billion** (up 15.7% YoY), accounting for **75.6%** of the Inclusive Finance segment's assets[92](index=92&type=chunk)[94](index=94&type=chunk) [Construction and Agricultural Machinery Leasing](index=32&type=section&id=6.4.2%20Construction%20and%20Agricultural%20Machinery%20Leasing) In H1 2025, China's construction machinery domestic demand strengthened, and agricultural machinery was affected by production cycles, while the Group continued to consolidate cooperation with industry leaders, placing over **14,500 units** of equipment, benefiting over **2,500 end customers**, but related assets decreased by 12.7% - In H1 2025, domestic demand resilience in China's construction machinery industry strengthened, with significant year-on-year growth in domestic sales of excavators and loaders[93](index=93&type=chunk) - The Group's construction and agricultural machinery businesses placed over **14,500 units** of equipment, directly or indirectly benefiting over **2,500 end customers**[93](index=93&type=chunk) - Assets related to construction and agricultural machinery leasing amounted to **RMB 8.893 billion** (down 12.7% YoY), accounting for **24.4%** of the Inclusive Finance segment's assets[94](index=94&type=chunk) [Green Energy and High-End Equipment Leasing](index=33&type=section&id=6.5%20Green%20Energy%20and%20High-End%20Equipment%20Leasing) In H1 2025, the Green Energy and High-End Equipment Leasing segment's total assets grew 16.6%, income and other gains increased 19.8%, and profit before tax rose 17.3%, primarily due to the expanded scale of leasing assets in new energy power stations and emerging industries - As of end-June 2025, national cumulative power generation capacity reached **3.65 billion kilowatts** (up 18.7% YoY), with significant growth in solar and wind power installed capacity[95](index=95&type=chunk) - The Group's total installed capacity for new energy power stations reached **13.82 gigawatts**, and new energy storage power stations **3,895 megawatt-hours**[96](index=96&type=chunk) - The Green Energy and High-End Equipment Leasing segment achieved new business placements of **RMB 23.461 billion**[96](index=96&type=chunk) - This segment's total assets were **RMB 113.308 billion** (up 16.6% YoY), income and other gains **RMB 2.013 billion** (up 19.8% YoY), and profit before income tax **RMB 628 million** (up 17.3% YoY)[97](index=97&type=chunk) - The increase in profit before income tax was primarily due to the Group's continuous transformation and innovation, expanding the scale of leasing assets in new energy power stations and emerging industries[97](index=97&type=chunk) Sub-segment Assets | Sub-segment Assets (RMB millions) | June 30, 2025 Net Value | June 30, 2025 Share | Dec 31, 2024 Net Value | Dec 31, 2024 Share | | :-------------------------------- | :---------------------- | :------------------ | :------------------- | :----------------- | | Green Energy Leasing | 74,334.9 | 65.6% | 57,665.2 | 59.3% | | High-End Equipment Leasing | 38,973.0 | 34.4% | 39,511.9 | 40.7% | | **Total** | **113,307.9** | **100.0%** | **97,177.1** | **100.0%** | [Funding Management](index=35&type=section&id=7%20Funding%20Management) The Group, leveraging high credit ratings, continuously strengthened its funding capabilities and diversified channels, securing approximately **RMB 774.92 billion** in bank credit lines as of June 30, 2025, and successfully issuing **RMB 5 billion** in financial bonds and **USD 700 million** in senior bonds, while effectively managing interest rate and exchange rate risks - The Group holds high credit ratings of Moody's A1, S&P A, and Fitch A, with total bank credit lines of approximately **RMB 774.92 billion** as of June 30, 2025, of which approximately **RMB 452.66 billion** remained unused[98](index=98&type=chunk) - In H1 2025, the Group successfully issued **RMB 5 billion** in 3-year financial bonds (including green financial bonds) and publicly issued **USD 400 million** in 5-year fixed-rate and **USD 300 million** in 5-year floating-rate senior bonds in the global market[99](index=99&type=chunk) - The Group effectively mitigated the impact of interest rate and exchange rate fluctuations by actively managing the matching of assets and liabilities in terms of interest rate structure and currency[99](index=99&type=chunk) - As of June 30, 2025, the Group's bank borrowings and bonds payable were **RMB 313.384 billion** and **RMB 31.965 billion**, respectively[99](index=99&type=chunk) [Risk Management](index=36&type=section&id=8%20%E9%A2%A8%E9%99%A9%E7%AE%A1%E7%90%86) The Group established a comprehensive risk management system covering all personnel, processes, businesses, institutions, products, and risk types, employing a "three lines of defense" layered management approach with a "prudent" risk appetite, and continuously improved risk management systems in H1 2025, with no significant risk events occurring - The Group aims to build an independent, comprehensive, and professional risk management system, establishing and continuously improving a holistic risk management framework covering 'all personnel, processes, businesses, institutions, products, and risk types'[100](index=100&type=chunk) - The Group adopts a layered management approach based on 'three lines of defense': business lines (first), risk management lines (second), and internal audit department (third)[100](index=100&type=chunk) - The Group adopts a 'prudent' risk appetite strategy, favoring industries and areas with mature business models, economies of scale, and excellent asset quality, as well as large enterprises, industry leaders, or high-quality listed company clients[101](index=101&type=chunk) - In H1 2025, the Group continued to improve its comprehensive risk management system, actively benchmarking against new regulatory requirements, revising policy documents for market risk and country risk, refining risk management requirements, and implementing risk management responsibilities[102](index=102&type=chunk) - The Group experienced no significant environmental, social, and governance (ESG) risk events[103](index=103&type=chunk) [Credit Risk](index=38&type=section&id=7.1%20Credit%20Risk) Credit risk is the Group's primary risk, for which it maintains a "prudent" appetite, managed through enhanced risk analysis, control, and early warning mechanisms; non-performing asset ratios and finance lease non-performing asset ratios increased but remained low, with a diversified industry distribution - Credit risk is the Group's primary risk, mainly stemming from finance lease business, and the Group generally maintains a 'prudent' risk appetite towards it[104](index=104&type=chunk) Credit Risk Indicators | Indicator (RMB millions) | June 30, 2025 | Dec 31, 2024 | | :----------------------------------- | :------------ | :------------- | | Non-Performing Assets | 2,744.8 | 2,354.0 | | Non-Performing Asset Ratio | 0.63% | 0.56% | | Non-Performing Finance Lease Related Assets | 2,037.2 | 1,683.2 | | Non-Performing Finance Lease Business Ratio | 0.97% | 0.80% | - As of June 30, 2025, the Group's largest single client's finance lease business balance accounted for **9.91%** of net capital, and the largest single group client's balance accounted for **15.85%** of net capital[111](index=111&type=chunk)[112](index=112&type=chunk) - As of June 30, 2025, the total balance of finance lease related assets for the top ten clients was **RMB 25.410 billion**, representing **12.04%** of total finance lease related assets[113](index=113&type=chunk)[114](index=114&type=chunk) Finance Lease Related Assets by Industry Segment | Industry Segment (RMB millions) | June 30, 2025 Amount | June 30, 2025 Share | Dec 31, 2024 Amount | Dec 31, 2024 Share | | :------------------------------ | :----------------- | :----------------- | :----------------- | :----------------- | | Aircraft Leasing | 638.0 | 0.3% | 635.3 | 0.3% | | Regional Development Leasing | 70,720.9 | 33.5% | 81,601.0 | 38.6% | | Shipping Leasing | 18,886.6 | 9.0% | 18,311.9 | 8.7% | | Inclusive Finance | 25,266.5 | 12.0% | 24,243.3 | 11.5% | | Green Energy and High-End Equipment Leasing | 95,473.9 | 45.2% | 86,586.0 | 40.9% | | **Total** | **210,985.9** | **100.0%** | **211,377.5** | **100.0%** | [Market Risk](index=44&type=section&id=7.2%20Market%20Risk) The Group's primary market risks include interest rate and exchange rate risks, for which it maintains a "prudent" appetite, controlled through asset-liability repricing period management and derivative financial instruments to ensure stable interest margins and mitigate market volatility - The Group's primary market risks include interest rate risk and exchange rate risk, for which it generally maintains a 'prudent' risk appetite[116](index=116&type=chunk) - Interest rate risk is managed through exposure analysis, sensitivity analysis, active management of asset-liability repricing periods, and derivative financial instruments hedging[117](index=117&type=chunk)[118](index=118&type=chunk) - Exchange rate risk is managed by actively matching asset and liability currencies in daily operations and using financial derivatives to hedge, thereby controlling the impact of exchange rate fluctuations on the Group's profit within a certain range[119](index=119&type=chunk) [Liquidity Risk](index=46&type=section&id=7.3%20Liquidity%20Risk) The Group maintains a "prudent" risk appetite for liquidity risk, managing it through reasonable liquidity reserves and diversified funding sources; as of June 30, 2025, it had an interbank borrowing limit of **RMB 12.642 billion**, indicating a sound liquidity position - The Group generally maintains a 'prudent' risk appetite for liquidity risk, aiming to cover maturing liabilities and business development funding needs through adequate liquidity reserves and diversified funding sources[120](index=120&type=chunk) - As of June 30, 2025, the Group had an interbank borrowing limit of **RMB 12.642 billion**, with cumulative interbank borrowings of **RMB 32.266 billion** in H1 2025[121](index=121&type=chunk) [Operational Risk](index=47&type=section&id=7.4.1%20Operational%20Risk) The Group maintains a "prudent" risk appetite for operational risk, and in H1 2025, it prioritized operational risk management, improving its system, optimizing tools, establishing a loss database, and strengthening joint prevention and control, with no significant operational risk events occurring - The Group generally maintains a 'prudent' risk appetite for operational risk[122](index=122&type=chunk) - In H1 2025, the Group continued to improve its operational risk management system, optimizing management methods and tools, establishing an operational risk loss database, and strengthening joint prevention and control[122](index=122&type=chunk) - In H1 2025, the Group's operational risk loss rate was zero, with no significant operational risk events occurring[122](index=122&type=chunk) [Information Technology Risk](index=47&type=section&id=7.4.2%20Information%20Technology%20Risk) The Group maintains a "prudent" risk appetite for information technology risk, and in H1 2025, its systems operated stably with normal monitoring indicators; the Group strengthened application security, advanced infrastructure reconstruction, explored data development, and optimized its security management system, with no significant IT risk events occurring - The Group generally maintains a 'prudent' risk appetite for information technology risk[123](index=123&type=chunk) - In H1 2025, the Group's systems operated stably overall, with all information technology risk monitoring indicators remaining normal[123](index=123&type=chunk) - The Group strengthened application system operational security, advanced the implementation of infrastructure reconstruction plans, explored deeper data development management, and optimized its security management system[123](index=123&type=chunk)[124](index=124&type=chunk) - In H1 2025, the Group experienced no significant information technology risk events[124](index=124&type=chunk) [Reputation Risk](index=48&type=section&id=7.4.3%20Reputation%20Risk) The Group maintains a "prudent" risk appetite for reputation risk, and in H1 2025, it continuously strengthened reputation risk management through public opinion monitoring, pre-emptive response plans, consumer rights protection, and market communication, with no significant reputation risk events occurring - The Group generally maintains a 'prudent' risk appetite for reputation risk[125](index=125&type=chunk) - In H1 2025, the Group continuously strengthened reputation risk management, actively conducting prevention and brand image building through 24/7 public opinion monitoring, pre-emptive response plans, enhanced consumer rights protection, and market communication[126](index=126&type=chunk) - In H1 2025, the Group experienced no significant reputation risk events[126](index=126&type=chunk) [Country Risk](index=49&type=section&id=7.4.4%20Country%20Risk) The Group maintains a "prudent" risk appetite for country risk, and in H1 2025, it continuously strengthened country risk management by monitoring overseas situations, improving frameworks and measurement methods, enhancing limit management, and regularly conducting risk assessments, with no significant country risk events occurring - The Group generally maintains a 'prudent' risk appetite for country risk[127](index=127&type=chunk) - In H1 2025, the Group continuously strengthened country risk management, including monitoring overseas situations, improving management frameworks and measurement methods, enhancing limit management, and regularly conducting country risk assessments[127](index=127&type=chunk) - In H1 2025, the Group experienced no significant country risk events[127](index=127&type=chunk) [Capital Management](index=49&type=section&id=8%20%E8%B3%87%E6%9C%AC%E7%AE%A1%E7%90%86) The Group aims to maintain reasonable capital adequacy ratios to meet regulatory requirements and support business development, and in H1 2025, it strengthened its capital management foundation, improved mechanisms, accelerated risk-weighted asset measurement system development, and deepened forward-looking and refined capital management, with all capital indicators meeting regulatory requirements - The Group's capital management objective is to maintain reasonable capital adequacy ratios to meet

Core Viewpoint - The company, Guoyin Financial Leasing, announced a capital increase of $1 billion to enhance the capital strength of Guoyin Aviation Financial Leasing Co., Ltd. and ensure its stable operation [1] Group 1: Company Actions - Guoyin Financial Leasing plans to use its own funds for the capital increase [1] - After the capital increase, Guoyin Financial Leasing will continue to hold 100% ownership of Guoyin Aviation [1] Group 2: Regulatory Compliance - The capital increase is aimed at fulfilling regulatory requirements [1] - The move is intended to promote the stable operation of Guoyin Aviation [1]