国银金租(01606) - 2025 - 中期业绩

Financial Summary Condensed Consolidated Income Statement Summary 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] - 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] Condensed Consolidated Statement of Financial Position Summary 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][13] - As of June 30, 2025, total liabilities consisted of 83.3% borrowings, 8.5% bonds payable, and 8.2% other liabilities[14][15] Key Financial and Regulatory Indicators 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] 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] Management Discussion and Analysis Operating Environment 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] - 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] - 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] H1 2025 Operating Review 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] 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][28] - 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] Condensed Consolidated Income Statement Analysis 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] - 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] - 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] Finance Lease Income 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] - Regional development leasing income decreased by 36.7%, primarily due to business transformation leading to a reduction in asset scale and yield[34] - Inclusive finance income increased by 14.1%, primarily due to increased vehicle leasing placements and an overall rise in yield[35] - 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] Operating Lease Income 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] - Inclusive finance operating lease income increased by 48.6%, primarily due to an increase in the asset scale of vehicle operating leases[39] - Green energy and high-end equipment operating lease income increased by 66.1%, primarily due to an increase in asset scale[39] Net Investment Income 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] Other Income, Gains or Losses 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] Cost and Expenses 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] - Staff costs decreased by 9.2%, primarily due to adjustments in personnel structure[44] - Interest expenses decreased by 31.4%, primarily due to a reduction in both average borrowing scale and financing cost rates[45] - 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] Profit Before Income Tax 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 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] Condensed Consolidated Statement of Financial Position Analysis 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] - Total liabilities increased by 2.9%, primarily to support the growth in asset scale[59] Cash and Bank Balances 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] Finance Lease Receivables 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] Prepayments 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] Property and Equipment 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] Other Assets 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] Lease Assets 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 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] Bonds Payable 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] Other Liabilities 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] Cash Flow Statement Analysis 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] - Net cash outflow from investing activities decreased by 86.6%, primarily due to a reduction in the Group's investment payments[63] - Net cash inflow from financing activities increased, primarily due to the Group's bond issuances leading to higher net cash inflows[63] Business Segments 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] 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 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] - 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] - 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] - 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][75] - In H1 2025, the Group received approximately USD 134 million in insurance compensation for aircraft stranded in Russia[83] Regional Development Leasing 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] - 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] - 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] Shipping Leasing 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] - 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] - 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] - 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] - 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][88] Inclusive Finance 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] - 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] - 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] Vehicle Leasing 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] - The Group placed over 70,000 vehicles, providing financing support to over 40,000 end customers[92] - 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][94] Construction and Agricultural Machinery Leasing 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] - 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] - 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] Green Energy and High-End Equipment Leasing 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] - 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] - The Green Energy and High-End Equipment Leasing segment achieved new business placements of RMB 23.461 billion[96] - 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] - 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] 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 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] - 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] - 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] - 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] Risk Management 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] - 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] - 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] - 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] - The Group experienced no significant environmental, social, and governance (ESG) risk events[103] Credit Risk 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] 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][112] - 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][114] 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 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] - Interest rate risk is managed through exposure analysis, sensitivity analysis, active management of asset-liability repricing periods, and derivative financial instruments hedging[117][118] - 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] Liquidity Risk 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] - 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] Operational Risk 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] - 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] - In H1 2025, the Group's operational risk loss rate was zero, with no significant operational risk events occurring[122] Information Technology Risk 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] - In H1 2025, the Group's systems operated stably overall, with all information technology risk monitoring indicators remaining normal[123] - 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][124] - In H1 2025, the Group experienced no significant information technology risk events[124] Reputation Risk 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] - 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] - In H1 2025, the Group experienced no significant reputation risk events[126] Country Risk 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] - 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] - In H1 2025, the Group experienced no significant country risk events[127] Capital Management 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