Company Overview and History - China Huarong Asset Management Co., Ltd. was established on November 1, 1999, and was restructured into a joint-stock company on September 28, 2012[5] - The company went public on the Hong Kong Stock Exchange on October 30, 2015[5] - As of 2022, China Huarong has 33 branches and a service network covering 30 provinces, autonomous regions, and municipalities in China, as well as Hong Kong and Macau[6] - The company's major shareholders include China CITIC Group Corporation, the Ministry of Finance, China Life Insurance (Group) Company, and Warburg Pincus[5] - The company's subsidiaries include Huarong Financial Leasing, Huarong Rongde, Huarong International, and Huarong Securities[11] Financial Performance - Total revenue for 2022 was RMB 37,264.0 million, a significant decrease from RMB 68,093.9 million in 2021[36] - Net loss attributable to the company's shareholders for 2022 was RMB 27,581.1 million, compared to a profit of RMB 378.5 million in 2021[37] - Interest income for 2022 was RMB 11,225.4 million, down from RMB 13,592.1 million in 2021[36] - Credit impairment losses for 2022 increased to RMB 29,381.0 million, compared to RMB 13,214.6 million in 2021[36] - Disposal or deemed disposal of subsidiaries and joint ventures resulted in a net gain of RMB 589.0 million in 2022, slightly up from RMB 571.7 million in 2021[36] - Total expenses for 2022 were RMB 75,063.1 million, up from RMB 64,240.4 million in 2021[36] - The fair value change of other financial assets and liabilities resulted in a loss of RMB 11,158.2 million in 2022, compared to a gain of RMB 11,599.3 million in 2021[36] - The company's income from non-performing debt assets decreased to RMB 22,779.1 million in 2022 from RMB 28,077.2 million in 2021[36] - Total assets decreased to RMB 955,326.0 million in 2022 from RMB 1,568,421.8 million in 2021, a significant decline[38] - Total liabilities decreased to RMB 906,946.6 million in 2022 from RMB 1,464,437.4 million in 2021[40] - Equity attributable to the company's shareholders dropped to RMB 47,026.8 million in 2022 from RMB 59,343.9 million in 2021[40] - Average return on equity (ROE) was -51.9% in 2022, compared to 1.0% in 2021[41] - Average return on assets (ROA) was -2.2% in 2022, compared to 0.1% in 2021[41] - Asset-liability ratio increased to 94.9% in 2022 from 93.4% in 2021[41] - Basic earnings per share (EPS) was -RMB 0.34 in 2022, compared to RMB 0.01 in 2021[41] - Diluted earnings per share (EPS) was -RMB 0.34 in 2022, compared to RMB 0.01 in 2021[41] - Loans and advances to customers decreased to RMB 38.5 million in 2022 from RMB 247,164.0 million in 2021[38] - Financial assets at fair value through profit or loss decreased to RMB 309,455.9 million in 2022 from RMB 351,047.7 million in 2021[38] - The company's non-performing asset business scale increased from 52% to 76% after transferring equity in five financial subsidiaries[45] - The company's new non-performing asset business investments totaled RMB 59.1 billion, with 42 collaborative projects implemented leveraging CITIC Group's advantages[45] - The company completed 27 real estate relief projects, expected to ensure the delivery of approximately 37,000 commercial housing units and drive RMB 92 billion in project resumption[46] - The company achieved significant loss reduction in the second half of the year compared to the first half, with substantial growth in main business investments and risk reduction[47] - The company's strategic goal is to become an industry benchmark within five years, with a focus on high-quality new investments and risk resolution[48] - The company acquired non-performing assets from small and medium-sized banks exceeding RMB 30 billion in 2022[52] - The company implemented real estate relief projects expected to drive RMB 92 billion in project resumption and ensure the delivery of approximately 37,000 commercial housing units[52] - The company expanded state-owned enterprise reform projects with an investment scale of nearly RMB 15 billion[52] - The company's risk exposure reduction increased by 16.6% year-on-year, reaching the best level in the past three years[53] - The company issued a total of RMB 75.1 billion in various bonds in 2022, optimizing its debt structure[53] - The company reported a net loss attributable to shareholders of RMB 27,581.1 million in 2022, primarily due to a decrease in fair value changes of equity financial assets and increased credit impairment losses[61] - Fair value changes of equity financial assets (both listed and unlisted) amounted to a loss of RMB 8,880.2 million, a decrease of RMB 18,118.3 million compared to the previous year[61] - Credit impairment losses reached RMB 29,381.0 million, an increase of RMB 16,166.4 million year-over-year, driven by macroeconomic conditions and the downturn in the real estate sector[61] - The balance of acquired restructured non-performing debt assets decreased by 16.4% to RMB 278,382.1 million, with operating income from these assets declining by 18.6% to RMB 22,849.5 million[61] - Total revenue from continuing operations dropped by 45.3% to RMB 37,264.0 million, with significant declines in non-performing debt asset income (-18.9%) and interest income (-17.4%)[63] - The company's loss attributable to shareholders in the second half of 2022 decreased by RMB 10,151.7 million compared to the first half, indicating an improving trend[62] - Other financial assets and liabilities experienced a significant fair value loss of RMB 11,158.2 million, a 196.2% decrease compared to the previous year[63] - The company's total expenses increased by 16.8% to RMB 75,063.1 million, driven by a 122.3% rise in credit impairment losses and a 95.9% increase in other asset impairment losses[63] - The company's pre-tax loss from continuing operations widened to RMB 37,116.3 million, a 2,259.8% decrease compared to the previous year's profit[63] - The company's loss from continuing operations for the year reached RMB 33,381.5 million, a 1,238.8% increase compared to the previous year[63] - Total revenue for 2022 decreased by 45.3% to RMB 37,264.0 million, primarily due to a decrease in fair value changes of other financial assets and liabilities, non-performing loan asset income, and interest income[65] - Non-performing loan asset income decreased by 18.9% to RMB 22,779.1 million in 2022, with the total amount of non-performing loan assets decreasing by 16.7% to RMB 277,426.6 million[66] - Fair value changes of non-performing loan assets decreased by 11.7% to RMB 5,709.8 million in 2022, with realized disposal net income from acquisition and disposal business decreasing by 18.1% to RMB 6,880.0 million[68][69] - Fair value changes of other financial assets and liabilities decreased by 196.2% to RMB -11,158.2 million in 2022, with realized fair value changes decreasing by 137.3% to RMB -2,839.9 million and unrealized fair value changes decreasing by 308.9% to RMB -8,318.3 million[71][72] - Interest income decreased by 17.4% to RMB 11,225.4 million in 2022[65] - Financing lease income decreased by 48.2% to RMB 1,056.3 million in 2022[65] - Commission and fee income decreased by 43.6% to RMB 233.5 million in 2022[65] - Dividend income decreased by 14.0% to RMB 914.3 million in 2022[65] - Other income and net gains increased by 133.7% to RMB 6,490.1 million in 2022[65] - Interest income decreased by 17.4% to RMB 11,225.4 million in 2022, primarily due to a 35.6% reduction in the scale of debt instruments measured at amortized cost and fair value through other comprehensive income[73] - Financing lease income decreased by 48.2% to RMB 1,056.3 million in 2022, mainly due to reduced new business placements by Huarong Financial Leasing[74] - Other income and net gains/losses increased by 133.7% to RMB 6,490.1 million in 2022, driven by gains from foreign exchange, disposal of investment properties, and investments in associates[76] - Discontinued operations revenue decreased by 23.0% to RMB 20,181.5 million in 2022, with a significant net gain of RMB 7,576.5 million from the disposal of four subsidiaries[78] - Total ongoing operating expenses increased by 16.8% to RMB 75,063.1 million in 2022, mainly due to a 122.3% increase in credit impairment losses[79][81] - Interest expenses decreased by 13.2% to RMB 37,064.5 million in 2022, partially offsetting the rise in total ongoing operating expenses[81] - Credit impairment losses surged by 122.3% to RMB 29,381.0 million in 2022, significantly impacting the company's expense structure[81] - Other asset impairment losses increased by 95.9% to RMB 1,184.4 million in 2022, reflecting higher write-downs on non-performing assets[81] - Total interest expenses decreased by 13.2% to RMB 37,064.5 million in 2022, with a 15.8% reduction in loan interest expenses and a 2.9% decrease in interest expenses on bonds and notes[83] - Operating expenses decreased by 9.2% to RMB 6,839.4 million in 2022, driven by reductions in real estate development and sales costs, property and equipment depreciation, and right-of-use asset depreciation[85] - Employee compensation expenses for continuing operations increased by 13.7% to RMB 2,668.5 million in 2022, while total employee compensation (including discontinued operations) decreased by 17.3% to RMB 3,981.3 million[85][86] - Credit impairment losses surged by 122.3% to RMB 29,381.0 million in 2022, primarily due to increased impairments on debt instruments measured at amortized cost and fair value through other comprehensive income[88] - Other asset impairment losses increased by 95.9% to RMB 1,184.4 million in 2022, mainly due to impairments on equity interests in associates and joint ventures, goodwill, and foreclosed assets[89][91] - Discontinued operations expenses decreased by 49.6% to RMB 10,273.3 million in 2022, with significant reductions in interest expenses (49.4%) and operating expenses (49.9%)[93] - Income tax expenses for continuing operations shifted from a loss of RMB 4,211.9 million in 2021 to a gain of RMB 3,734.8 million in 2022, driven by a 479.4% increase in deferred tax[95] - The company's continuing operations income tax expense decreased by 188.7% from RMB 4,211.9 million in 2021 to RMB -3,734.8 million in 2022, primarily due to reduced taxable income from losses in certain entities and increased deferred tax assets from higher fair value and credit impairment losses[96] - Discontinued operations income tax expense increased by 383.5% from RMB 936.8 million in 2021 to RMB 4,529.4 million in 2022, with RMB 3,967.6 million (87.6%) attributed to the disposal of Huarong Consumer Finance, Huarong Securities, Huarong Xiangjiang Bank, and Huarong Trust[97] - The non-performing asset management segment's revenue decreased by 38.0% to RMB 32,105.7 million in 2022, with pre-tax profit dropping by 398.3% to RMB -21,497.7 million, and total assets decreasing by 11.4% to RMB 710,394.2 million[99][101][102] - The financial services segment's revenue decreased by 1.6% to RMB 7,548.5 million in 2022, with pre-tax profit dropping by 19.1% to RMB 1,597.3 million, and total assets decreasing by 81.8% to RMB 107,094.8 million[99][101][102] - The asset management and investment segment's revenue decreased by 97.1% to RMB 381.3 million in 2022, with pre-tax profit dropping by 160.7% to RMB -16,573.0 million, and total assets decreasing by 16.4% to RMB 212,630.5 million[99][101][102] - The company's total assets decreased by 39.1% to RMB 955,326.0 million as of December 31, 2022, following the disposal of Huarong Consumer Finance, Huarong Securities, Huarong Xiangjiang Bank, and Huarong Trust[104] - The company's total liabilities decreased by 38.1% to RMB 906,946.6 million as of December 31, 2022[104] - The company's consolidated revenue from continuing operations decreased by 45.3% to RMB 37,264.0 million in 2022, with pre-tax profit dropping by 2,259.8% to RMB -37,116.3 million[99][101] - Total assets decreased by 39.1% from RMB 1,568,421.8 million in 2021 to RMB 955,326.0 million in 2022[108] - Deposits with financial institutions decreased by 33.5% from RMB 146,698.3 million in 2021 to RMB 97,578.2 million in 2022, mainly due to repayment of matured borrowings[109] - Financial assets at fair value through profit or loss decreased by 11.8% from RMB 351,047.7 million in 2021 to RMB 309,455.9 million in 2022[106] - Loans and advances to customers decreased by 100.0% from RMB 247,164.0 million in 2021 to RMB 38.5 million in 2022[106] - Debt instruments at amortized cost decreased by 28.5% from RMB 580,799.4 million in 2021 to RMB 415,352.7 million in 2022[106] - Total liabilities decreased by 38.1% from RMB 1,464,437.4 million in 2021 to RMB 906,946.6 million in 2022[106] - Equity attributable to the company's shareholders decreased by 20.8% from RMB 59,343.9 million in 2021 to RMB 47,026.8 million in 2022[107] - Total equity decreased by 53.5% from RMB 103,984.4 million in 2021 to RMB 48,379.4 million in 2022[107] - Permanent debt capital decreased by 92.2% from RMB 22,377.9 million in 2021 to RMB 1,752.6 million in 2022[107] - Non-controlling interests decreased by 101.8% from RMB 22,262.6 million in 2021 to RMB (400.0) million in 2022[107] - Total financial assets measured at fair value through profit or loss decreased by 11.8% from RMB 351,047.7 million in 2021 to RMB 309,455.9 million in 2022[112] - Acquisition and disposal of non-performing loan assets decreased by 1.8% from RMB 182,087.2 million in 2021 to RMB 178,770.1 million in 2022[112] - Acquisition and restructuring of non-performing loan assets increased by 100.0% to RMB 955.5 million in 2022[112] - Equity instruments measured at fair value through profit or loss decreased by 11.0% from RMB 61,163.2 million in 2021 to RMB 54,440.4 million in 2022[113] - Net receivables from finance leases decreased by 34.2% from RMB 26,275.6 million in 2021 to RMB 17,283.0 million in 2022[118] - Total receivables from finance leases and sale-leaseback receivables decreased by 3.4% from RMB 95,612.0 million in 2021 to RMB 92,395.7 million in 2022[118] - Debt instruments measured at fair value through other comprehensive income decreased by 55.7% from RMB 57,203.6 million in 2021 to RMB 25,318.4 million in 2022[120] - Government bonds within debt instruments decreased by 88.4% from RMB 10,500.6 million in 2021 to RMB 1,219.9 million in 2022[120] - Corporate bonds within debt instruments decreased by 93.8% from RMB 12,992.6 million in 2021 to RMB 806.5 million in 2022[120] - Financial institution bonds within debt instruments decreased by 75.2% from RMB 2,642.5 million in 2021 to RMB 656.0 million in 2022[120] - The fair value of debt instruments measured at fair value
中国华融(02799) - 2022 - 年度财报