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].
中国信达(01359) - 2020 - 中期财报