中信金融资产(02799) - 2025 - 中期财报

Definitions Definitions of Key Terms This chapter defines key terms including financial asset management companies, debt-to-equity swaps, and non-performing loans, essential for report comprehension - The report defines several key terms, including financial asset management companies, debt-to-equity swaps, and non-performing loans, providing a foundation for readers to understand the report content[7][9][10] - The company's legal name is "China CITIC Financial Asset Management Co., Ltd.", abbreviated as "CITIC Financial Asset"[7] Company Overview Company Profile This chapter provides core identification details, including the company's registration information, legal representative, and H-share listing particulars Company Basic Information | Indicator | Content | | :--- | :--- | | Legal Chinese Name | 中國中信金融資產管理股份有限公司 | | Legal English Name | China CITIC Financial Asset Management Co., Ltd. | | Legal Representative | Liu Zhengjun | | Company Secretary | Wang Yongjie | | Registered Address | No. 8 Financial Street, Xicheng District, Beijing, China | | H-share Listing Exchange | The Stock Exchange of Hong Kong Limited | | Stock Code | 2799 | Financial Summary Group Financial Performance and Position This chapter presents the Group's unaudited consolidated financial data for the six months ended June 30, 2025, showing a profit of RMB 5,506.1 million and profit attributable to shareholders of RMB 6,167.6 million, with total assets reaching RMB 1,010,933.3 million Key Financial Data for the Six Months Ended June 30, 2025 (RMB million) | Indicator | 2025 (Unaudited) | 2024 (Unaudited) | | :--- | :--- | :--- | | Income Statement | | | | Total Revenue | 31,136.4 | 30,257.0 | | Total Expenses | (35,121.0) | (28,756.9) | | Profit Before Tax from Continuing Operations | 5,044.7 | 4,752.8 | | Profit for the Period from Continuing Operations | 5,506.1 | 4,599.4 | | Profit for the Period | 5,506.1 | 5,272.2 | | Attributable to Shareholders of the Company | 6,167.6 | 5,332.3 | | Financial Ratios | | | | Annualized Average Return on Equity | 21.1% | 21.2% | | Annualized Average Return on Assets | 1.1% | 1.0% | | Basic Earnings Per Share (RMB) | 0.066 | 0.056 | | Diluted Earnings Per Share (RMB) | 0.066 | 0.056 | Financial Position as of June 30, 2025 (RMB million) | Indicator | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--- | :--- | :--- | | Total Assets | 1,010,933.3 | 984,328.6 | | Total Liabilities | 958,001.9 | 934,564.3 | | Total Equity | 52,931.4 | 49,764.3 | | Equity Attributable to Shareholders of the Company | 60,277.7 | 56,495.6 | Management Discussion and Analysis Economic, Financial and Regulatory Environment In the first half of 2025, global economic growth weakened amid geopolitical uncertainties, while China's economy maintained overall stability and positive momentum, with financial regulators guiding AMCs to focus on core business and address risks, creating structural opportunities - In the first half of 2025, global economic growth momentum weakened, with the International Monetary Fund projecting global economic growth at 2.8%, a 0.5 percentage point decrease from 2024[23] - China's economy achieved a GDP of RMB 66.1 trillion in the first half, growing by 5.3% year-on-year, maintaining overall stability and positive momentum[23] - The National Financial Regulatory Administration guides financial asset management companies to focus on their core non-performing asset business, deepen specialized and differentiated development, and implement policies supporting large-scale equipment renewal, consumer goods trade-ins, urban renewal, and capital market stability, creating development opportunities for the industry[25][27] Financial Statement Analysis This chapter analyzes the Group's operating performance and financial position for the first half of 2025, showing a 21.1% increase in total revenue, a 15.7% rise in net profit attributable to shareholders, and optimized asset and liability structures enhancing risk resilience Group Operating Performance Overview for H1 2025 (RMB million) | Indicator | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 40,221.0 | 33,213.0 | 21.1% | | Net Profit Attributable to Shareholders of the Company | 6,168.0 | 5,332.3 | 15.7% | | Annualized Average Return on Equity | 21.1% | 18.4% | Increased by 2.7 percentage points | | Annualized Average Return on Assets | 1.1% | 0.75% | Increased by 0.35 percentage points | | Basic Earnings Per Share (RMB) | 0.066 | 0.056 | - | Total Revenue from Continuing Operations In the first half of 2025, the Group's total revenue from continuing operations increased, primarily due to significant gains from investments in associates, despite declines in fair value changes of certain financial assets Major Components of Total Revenue from Continuing Operations (RMB million) | Revenue Item | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Interest Income | 4,444.5 | 4,428.7 | 0.4% | | Fair Value Changes of Non-performing Debt Assets | 309.5 | 2,316.9 | (86.6%) | | Fair Value Changes of Other Financial Assets and Liabilities | 1,406.2 | 13,933.4 | (89.9%) | | Income from Non-performing Debt Assets | 3,786.5 | 7,861.0 | (51.8%) | | Other Income and Other Net Gains/(Losses) | 18,833.1 | 837.5 | 2,148.7% | | Of which: Gains/(Losses) from Investments in Associates and Joint Ventures | 21,317.9 | (10.5) | 203,127.6% | | Total Revenue | 31,136.4 | 30,257.0 | 2.9% | - Interest income increased by 0.4% year-on-year, primarily from debt instruments measured at amortized cost, excluding non-performing debt assets[35] - Realized gains from fair value changes of non-performing debt assets increased by 101.6% year-on-year, but unrealized fair value change losses of RMB 1,411.6 million led to a significant overall decrease in fair value changes[37][39] - Fair value changes of other financial assets and liabilities showed significant year-on-year fluctuations due to changes in asset structure and capital market volatility[40] - Other income and other net gains increased significantly, mainly attributable to gains from investments in associates and joint ventures[44] Total Expenses from Continuing Operations In the first half of 2025, total expenses from continuing operations increased by 22.1% to RMB 35,121.0 million, driven by higher credit and other asset impairment losses, partially offset by lower interest and operating expenses Major Components of Total Expenses from Continuing Operations (RMB million) | Expense Item | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Interest Expense | (14,388.7) | (16,404.7) | (12.3%) | | Operating Expenses | (1,934.2) | (2,265.2) | (14.6%) | | Credit Impairment Losses | (16,856.7) | (9,766.6) | 72.6% | | Other Asset Impairment Losses | (1,851.8) | (217.2) | 752.6% | | Total Expenses | (35,121.0) | (28,756.9) | 22.1% | - Interest expense decreased by 12.3% year-on-year, primarily due to proactive expansion of financing sources, optimization of liability structure, and reduction in average financing costs[48] - Credit impairment losses significantly increased by 72.6% to RMB 16,856.7 million, but the overall provision coverage ratio for debt instruments measured at amortized cost and at fair value through other comprehensive income was 270%, indicating enhanced risk resilience[53] - Other asset impairment losses significantly increased by 752.6%, mainly from impairment provisions for inventories, interests in associates and joint ventures, and assets taken in lieu of debt[55] Income Tax Benefit/(Expense) from Continuing Operations In the first half of 2025, the Group's income tax from continuing operations shifted from an expense to a benefit, primarily due to changes in China corporate income tax and deferred income tax Income Tax Benefit/(Expense) from Continuing Operations (RMB million) | Item | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Current Income Tax | (158.4) | (1,014.8) | (84.4%) | | Deferred Income Tax | 619.8 | 861.4 | (28.0%) | | Total | 461.4 | (153.4) | (400.8%) | Segment Operating Performance The Group's business is divided into non-performing asset management and asset management and investment segments, with the former being the primary source of revenue and profit, showing significant growth in both, while the latter's revenue decreased but assets slightly increased Total Revenue by Business Segment (RMB million) | Segment | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Non-performing Asset Business Segment | 30,597.8 | 19,326.9 | 58.3% | | Asset Management and Investment Segment | 1,803.4 | 12,102.0 | (85.1%) | | Total | 31,136.4 | 30,257.0 | 2.9% | Profit/(Loss) Before Tax by Business Segment (RMB million) | Segment | 2025 | 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Non-performing Asset Business Segment | 12,140.9 | 1,950.8 | 522.4% | | Asset Management and Investment Segment | (6,654.0) | 3,237.0 | (305.6%) | | Total | 5,044.7 | 4,752.8 | 6.1% | - The non-performing asset business segment's total revenue increased by 58.3% and profit before tax by 522.4%, making it the primary contributor to the Group's revenue and profit[65] Group Financial Position As of June 30, 2025, the Group's total assets increased by 2.7% to RMB 1,010,933.3 million, total liabilities increased by 2.5% to RMB 958,001.9 million, and total equity increased by 6.4% to RMB 52,931.4 million Group Financial Position Overview (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | Change Rate | | :--- | :--- | :--- | :--- | | Total Assets | 1,010,933.3 | 984,328.6 | 2.7% | | Total Liabilities | 958,001.9 | 934,564.3 | 2.5% | | Total Equity | 52,931.4 | 49,764.3 | 6.4% | Assets As of June 30, 2025, the Group's total assets increased by 2.7% from the end of the previous year, with significant growth in financial assets at fair value through profit or loss, interests in associates and joint ventures, and equity instruments at fair value through other comprehensive income, while deposits with financial institutions and debt instruments at amortized cost decreased - Deposits with financial institutions amounted to RMB 63,631.2 million, a 27.3% decrease from the end of the previous year[72] - Financial assets at fair value through profit or loss amounted to RMB 354,169.6 million, a 4.8% increase from the end of the previous year, mainly due to the growth in acquisition and disposal of non-performing debt assets, unlisted equity instruments, trust products, and bonds[76] - Equity instruments at fair value through other comprehensive income amounted to RMB 4,816.3 million, a 190.1% increase from the end of the previous year, primarily due to the growth in listed equity investments[82] - The carrying value of debt instruments at amortized cost was RMB 229,707.7 million, a 6.2% decrease from the end of the previous year, mainly due to proactive adjustment of asset structure, but the carrying value of other debt instruments at amortized cost increased by 6.7%[87][89] - Interests in associates and joint ventures amounted to RMB 260,246.2 million, a 20.3% increase from the end of the previous year[91] Liabilities As of June 30, 2025, the Group's total liabilities increased by 2.5% from the end of the previous year, with an increase in borrowings and a decrease in bonds and notes payable, further optimizing the liability structure - Borrowings amounted to RMB 752,294.4 million, a 6.5% increase from the end of the previous year, maintaining stable financing scale and further optimizing the liability structure[93] - Bonds and notes payable amounted to RMB 152,910.4 million, a 7.0% decrease from the end of the previous year[94] Contingent Liabilities As of June 30, 2025, the Group had pending litigation cases as a defendant with a total claim amount of RMB 3,150.0 million, for which a provision of RMB 636.0 million has been made, and the Board believes these will not materially impact the Group's financial position or operations Contingent Liabilities (RMB million) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Claim Amount of Pending Litigation Cases | 3,150.0 | 2,746.0 | | Provision for Contingent Liabilities | 636.0 | 552.9 | Differences Between Financial Statements Prepared Under CAS and IFRS This chapter discloses the differences in net profit attributable to shareholders between the Group's financial statements prepared under China Accounting Standards and International Financial Reporting Standards, primarily due to differing accounting treatments for passive dilution of equity in associates and joint ventures Differences in Net Profit Attributable to Shareholders of the Company (RMB million) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Under China Accounting Standards | 8,889.3 | 5,332.3 | | Adjustment for Passive Dilution of Equity in Associates and Joint Ventures | (2,721.7) | – | | Under International Financial Reporting Standards | 6,167.6 | 5,332.3 | - The main difference lies in the treatment of changes in the carrying value of long-term equity investments resulting from passive dilution of equity in associates and joint ventures: China Accounting Standards recognize it in owners' equity, while International Financial Reporting Standards recognize it in profit or loss for the current period[97] Business Overview This chapter outlines the Group's performance in non-performing asset management and asset management and investment, with significant growth in revenue and profit for the former, driven by distressed asset revitalization and equity investments, while the latter saw a revenue decrease but strong international company performance, all supported by business synergy and talent strategy Total Revenue and Profit/(Loss) Before Tax by Continuing Operations Business Segment (RMB million) | Item | 2025 Amount | 2025 Proportion | 2024 Amount | 2024 Proportion | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | | | | | | Non-performing Asset Business Segment | 30,597.8 | 98.3% | 19,326.9 | 63.9% | | Asset Management and Investment Segment | 1,803.4 | 5.8% | 12,102.0 | 40.0% | | Total | 31,136.4 | 100.0% | 30,257.0 | 100.0% | | Profit/(Loss) Before Tax | | | | | | Non-performing Asset Business Segment | 12,140.9 | 240.7% | 1,950.8 | 41.0% | | Asset Management and Investment Segment | (6,654.0) | (131.9%) | 3,237.0 | 68.1% | | Total | 5,044.7 | 100.0% | 4,752.8 | 100.0% | Non-performing Asset Business In the first half of 2025, the Group's non-performing asset business segment proactively adjusted its structure, significantly expanded distressed asset revitalization, and reduced traditional acquisition and restructuring, resulting in a 2.7% increase in total assets and a 58.3% surge in total revenue, indicating continuous progress in core business transformation - The non-performing asset business segment's total assets amounted to RMB 856,056.5 million, a 2.7% increase from the end of the previous year[102] - The non-performing asset business segment's total revenue amounted to RMB 30,597.8 million, a 58.3% increase year-on-year[102] Acquisition and Disposal Business The company's acquisition and disposal capabilities continued to improve, with new acquisition costs increasing by 52.9% to RMB 23,536.7 million and realized gains surging by 180.8% to RMB 1,690.7 million in the first half, optimizing asset allocation with a focus on key economic regions Acquisition and Disposal Business Key Data (RMB million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | New Acquisition Costs | 23,536.7 | 15,398.4 | | Realized Gains | 1,690.7 | 602.2 | | Balance of Non-performing Debt Assets at Period End | 190,633.0 | 185,921.1 | - New acquisition costs increased by 52.9% year-on-year, and realized gains increased by 180.8% year-on-year[109] - Non-performing debt assets acquired from the Yangtze River Delta, Pearl River Delta, and Bohai Rim regions accounted for 74.1% of new acquisitions[113] Distressed Asset Revitalization Business The company's distressed asset revitalization business continued to grow, with new investments increasing by 43.6% to RMB 38,924.5 million and revenue rising by 65.5% to RMB 4,227.3 million in the first half, expanding its asset balance by 19.9% primarily in economically developed regions, with real estate remaining the main sector Distressed Asset Revitalization Business Key Data (RMB million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | New Investments | 38,924.5 | 27,099.2 | | Distressed Asset Revitalization Business Revenue | 4,227.3 | 2,555.0 | | Asset Balance at Period End | 151,257.7 | 126,170.9 | - New investments increased by 43.6% year-on-year, and revenue increased by 65.5% year-on-year[120] - The asset balance of distressed asset revitalization projects primarily targeted the Bohai Rim region, Yangtze River Delta, and Pearl River Delta regions, accounting for 65.7%[122] - The real estate industry accounted for the highest proportion of distressed asset revitalization projects, at 32.8%[126] Equity Investment Business The company's equity investment business focused on national strategic guidance, actively increasing asset allocation, achieving revenue of RMB 28,153.6 million and total assets of RMB 252,806.3 million in the first half of 2025 Equity Investment Business Revenue and Total Assets (RMB million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Business Revenue | 28,153.6 | 3,783.9 | | Total Assets | 252,806.3 | 188,224.5 | Acquisition and Restructuring Business In the first half of 2025, the company proactively adjusted its asset structure, accelerated the disposal and recovery of existing assets, leading to a decrease in both the number and asset balance of acquisition and restructuring projects, with current period revenue of RMB 3,464.7 million - The number of existing acquisition and restructuring projects decreased from 689 to 581, and the asset balance decreased from RMB 161,570.2 million to RMB 132,784.9 million[132] Acquisition and Restructuring Business Revenue (RMB million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Current Period Revenue | 3,464.7 | 7,628.3 | NPL-Related Businesses by Subsidiaries Real estate development-related revenue of the industrial company decreased by 25.1% year-on-year, while Huitong Asset's NPL-related revenue increased by 30.3% year-on-year, and Rongde Asset's total revenue decreased by 13.9% year-on-year - The industrial company's real estate development-related revenue was RMB 250.3 million, a 25.1% decrease year-on-year[137] - Huitong Asset's non-performing asset-related revenue was RMB 28.8 million, a 30.3% increase year-on-year[137] - Rongde Asset's total revenue was RMB 325.7 million, a 13.9% decrease year-on-year[137] Asset Management and Investment Business In the first half of 2025, the asset management and investment segment generated RMB 1,803.4 million in revenue, with the international company demonstrating strong performance through increased total revenue, profit before tax, and steady asset growth - The asset management and investment segment's revenue was RMB 1,803.4 million[138] International Company Key Indicators (RMB million) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | 4,908.5 | 4,307.7 | | Profit Before Tax | 1,764.2 | 803.3 | | Total Assets | 180,088.7 | 174,754.1 | Business Synergy Leveraging CITIC Group's "industry-finance integration" advantage, the Group deepens "industry-finance" and "finance-finance" collaborations with affiliates, innovating business synergy models for distressed asset resolution and existing asset revitalization to support real economic development - The company integrates internal and external advantageous resources, collaborating with the "CITIC Fleet" to provide comprehensive financial services across all licenses, cycles, and scenarios for enterprises[141] - Innovative business synergy models for distressed asset resolution and existing asset revitalization have been implemented, leading to a number of typical collaborative projects[141] Human Resources Management The Group implements a talent-strengthening strategy, building a high-quality professional workforce, optimizing its structure, improving incentive and restraint mechanisms, and enhancing employee capabilities to ensure talent support for strategic goals - As of June 30, 2025, the Group had a total of 4,761 employees, with 53% holding a master's degree or above[143] - Employees possess over 50 types of professional qualifications, including Certified Public Accountants, lawyers, and Chartered Financial Analysts[143] - The compensation policy is linked to the company's strategy, business development, and talent acquisition, based on operating performance, establishing a market-competitive yet internally equitable compensation management system[144] No Material Changes Except as disclosed in this interim report, there are no other material matters affecting the company's performance that require disclosure under Appendix D2 of the Listing Rules - No other material changes affecting the company's performance beyond those already disclosed[146] Risk Management The Group adheres to its "seek progress while maintaining stability" principle and "optimize assets, increase revenue, capture cash recovery, reduce non-performing assets, promote reform, and strengthen internal capabilities" operational guidelines, continuously enhancing its comprehensive risk management system, strengthening asset quality control, and effectively managing credit, market, liquidity, operational, and reputational risks, while also reinforcing internal audit and anti-money laundering efforts - The Group implements a risk management approach characterized by "effective risk control, strong development promotion, robust system building, and capable enhancement"[149] Comprehensive Risk Management System The Group continuously enhances its comprehensive risk management system, implementing the "Deepening Comprehensive Risk Management System Construction Plan (2023-2025)," strengthening consolidated risk management, and improving full-process risk prevention and control capabilities through measures such as industry research, optimized authorization, and stricter business access Credit Risk Management The Group continuously strengthens its credit risk management system, improving management policies and tools, enhancing full-process control from pre-investment to post-investment, strictly controlling business access, and effectively improving asset quality and promoting risk resolution through risk early warning and asset quality management Market Risk Management The Group continuously strengthens market risk management, improving management mechanisms and enhancing tracking analysis and monitoring reports on market fluctuations in stocks, bonds, and foreign exchange, effectively controlling stock, interest rate, and exchange rate risks through market value monitoring, professional institutional management, asset-liability currency matching, and hedging tools Liquidity Risk Management The Group closely monitors market liquidity, strengthening proactive and forward-looking liquidity management through indicator monitoring, early warning management, stress testing, and contingency plans, while actively expanding diversified financing channels and optimizing its liability structure to ensure overall sufficient liquidity and controllable risk Operational Risk Management The Group focuses on source governance and process control, strengthening process management, and conducting operational risk identification and assessment, continuously establishing and improving information technology risk prevention mechanisms, enhancing cybersecurity and stable operation capabilities of information systems, with no major or above cybersecurity incidents occurring in the first half Reputational Risk Management The Group systematically conducts reputational risk management, adhering to proactive, prudent, full-process, and comprehensive principles, timely identifying potential reputational risks, taking measures to prevent, control, and mitigate them, maintaining overall stable public opinion, and safeguarding the company's reputation and brand image Internal Audit The Group's internal audit department independently performs its oversight duties, focusing on policy implementation, corporate governance, key businesses, financial management, risk management, and internal control, conducting economic responsibility audits, operational project audits, and special audits to continuously enhance the quality and effectiveness of internal audit oversight Anti-Money Laundering Efforts The Group strictly adheres to anti-money laundering and anti-terrorist financing laws and regulations, continuously strengthening money laundering risk prevention and control, actively conducting anti-money laundering publicity and training, and continuously improving risk prevention and control capabilities Capital Management The Group continuously deepens its capital constraint philosophy, improves its capital management system, and optimizes capital structure and quality through multiple measures, enhancing internal capital accumulation capabilities, with a capital adequacy ratio of 15.97% and a leverage ratio of 8.6:1 as of June 30, 2025, indicating continuous improvement in capital adequacy Capital Adequacy Ratio and Leverage Ratio | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital Adequacy Ratio | 15.97% | 15.69% | | Leverage Ratio | 8.6:1 | 10.1:1 | - The company continuously optimizes its capital structure and quality, enhances its internal capital accumulation capabilities, accelerates the repair of financial conditions of non-financial subsidiaries, and improves capital utilization efficiency[160] Development Outlook Looking ahead to the second half, global economic recovery faces challenges, while China's economy is expected to remain stable and improve, with the non-performing asset industry entering a strategic opportunity period of expanding market supply, emerging policy opportunities, and industry transformation, as the company aims to achieve its "three-year significant quality and efficiency improvement" strategic goal and become an industry benchmark - In the second half, global economic recovery faces headwinds, with geopolitical conflicts and trade frictions remaining challenges, but China's economy is expected to remain stable and improve[164] - The non-performing asset industry will continue to be in a strategic opportunity period characterized by expanding market supply, emerging policy opportunities, and industry transformation[165] - The company will firmly implement the third step of its "two-year, three-step" strategy, fully achieving the "three-year significant quality and efficiency improvement" strategic goal, and establishing "six benchmarks" in Party building leadership, operating performance, core business capabilities, compliance and risk control, reform and innovation, and talent team[166] Share Capital Changes and Major Shareholders Share Capital Changes As of June 30, 2025, the company's total share capital was 80,246,679,047 shares, with domestic shares accounting for 55.93% and H-shares for 44.07%, and no changes in share capital structure during the reporting period Share Capital Structure (as of June 30, 2025) | Category | Number of Shares | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | | Domestic Shares | 44,884,417,767 | 55.93% | | H-shares | 35,362,261,280 | 44.07% | | Total Number of Shares | 80,246,679,047 | 100.00% | Major Shareholders As of June 30, 2025, China CITIC Group Corporation, the Ministry of Finance, Zhongbao Rongxin Private Equity Fund Management Co., Ltd., China Cinda Asset Management Co., Ltd., National Council for Social Security Fund, China Life Insurance (Group) Company, and ICBC Financial Asset Investment Co., Ltd. were the company's major shareholders, each holding over 5% of the shares Major Shareholders' Shareholdings (as of June 30, 2025) | Shareholder Name | Share Class | Number of Shares | Approximate Percentage of Total Share Capital (%) | | :--- | :--- | :--- | :--- | | China CITIC Group Corporation | Domestic Shares | 21,230,929,783 | 26.46 | | Ministry of Finance | Domestic Shares/H-shares | 19,870,039,607 | 24.76 | | Zhongbao Rongxin Private Equity Fund Management Co., Ltd. | Domestic Shares | 14,509,803,921 | 18.08 | | China Cinda Asset Management Co., Ltd. | H-shares | 3,921,568,627 | 4.89 | | National Council for Social Security Fund | H-shares | 2,475,271,109 | 3.08 | | China Life Insurance (Group) Company | Domestic Shares/H-shares | 3,610,784,313 | 4.50 | | ICBC Financial Asset Investment Co., Ltd. | H-shares | 1,960,784,313 | 2.44 | - CITIC Group is a large state-owned comprehensive multinational enterprise group, with the Ministry of Finance as its ultimate beneficial owner[169] - China Cinda Asset Management Co., Ltd. is the first financial asset management company approved by the State Council, with its core business being non-performing asset management[175] Directors, Supervisors and Senior Management Basic Information As of the publication date of this interim report, the company's Board of Directors consists of 10 members, the Supervisory Board comprises 4 members, and the list of senior management personnel is provided - The Board of Directors includes Executive Directors Mr. Liu Zhengjun (Chairman) and Mr. Li Zimin, as well as several Non-executive Directors and Independent Non-executive Directors[178] - The Supervisory Board members include External Supervisors Mr. Cheng Fengchao and Mr. Han Xiangrong, and Employee Representative Supervisors Ms. Sun Hongbo and Ms. Guo Jinghua[179] - Senior management includes President Mr. Li Zimin and several Vice Presidents[180] Changes During the reporting period, there were changes in the Board of Directors, with Ms. Yuan Xin elected and commencing duties as a Non-executive Director, and Mr. Liu Zhengjun and Mr. Xu Wei re-elected, while Mr. Zhu Ning resigned as an Independent Non-executive Director; for senior management, Mr. Chen Pengjun and Mr. Yang Yi were appointed and commenced duties as Vice Presidents, and Mr. Xu Jiongwei resigned as Vice President due to job relocation - Ms. Yuan Xin commenced duties as a Non-executive Director on July 2, 2025, after approval by the National Financial Regulatory Administration[181] - Mr. Liu Zhengjun was re-elected as an Executive Director and continues to serve as Chairman, and Mr. Xu Wei was re-elected as a Non-executive Director[181] - Mr. Zhu Ning resigned as an Independent Non-executive Director on March 28, 2025[183] - Mr. Chen Pengjun and Mr. Yang Yi commenced duties as Vice Presidents on February 13, 2025, and March 27, 2025, respectively[184] - Mr. Xu Jiongwei resigned from his position as Vice President on February 14, 2025[184] Information Changes During the Reporting Period During the reporting period, the appointment information of directors and supervisors was consistent with the company's 2024 annual report, with no other changes requiring disclosure under Rule 13.51B of the Listing Rules - Director and supervisor appointment information is consistent with the 2024 annual report, with no other changes requiring disclosure[185] Significant Matters Corporate Governance The company strictly adheres to relevant laws, regulations, and its articles of association, deepening corporate governance reform to establish an effective checks and balances mechanism, continuously improving governance systems, mechanisms, and culture, strengthening Party leadership, safeguarding shareholders' right to information, treating investors fairly, and maintaining market value stability and shareholder interests - The company deepens governance reform, establishing a governance mechanism where each party performs its duties, coordinates operations, and maintains effective checks and balances[186] - Party leadership is integrated into all aspects of corporate governance, ensuring shareholders' right to information and fair treatment of domestic and international investors[186] Board of Directors As of the publication date of this interim report, the Board of Directors comprises 10 members, with independent non-executive directors accounting for over one-third, and during the reporting period, the Board held 5 meetings, approved 25 proposals, and reviewed 16 reports, effectively playing its strategic leadership role - The Board of Directors consists of 10 members, including 2 Executive Directors, 4 Non-executive Directors, and 4 Independent Non-executive Directors[187] - During the reporting period, 5 Board meetings were held, 25 proposals were approved, and 16 reports were reviewed[187] Supervisory Board As of the publication date of this interim report, the Supervisory Board consists of 4 members, including 2 external supervisors and 2 employee representative supervisors, and during the reporting period, the Supervisory Board held 2 meetings, approved 6 proposals, faithfully performing its duties and safeguarding the legitimate rights and interests of the company and its shareholders - The Supervisory Board consists of 4 members, including 2 external supervisors and 2 employee representative supervisors[188] - During the reporting period, 2 meetings were held, and 6 proposals were approved[189] Senior Management During the reporting period, senior management organized and implemented business operations within the scope of authorization by the Board of Directors, focusing on the "three-year significant quality and efficiency improvement" strategic goal, promoting business development, risk control, and deepening reforms, holding 11 President's Office meetings and 21 special meetings to discuss and approve 62 important operational and management issues - Senior management implemented the work requirements of "optimizing assets, increasing revenue, capturing cash recovery, reducing non-performing assets, promoting reform, and strengthening internal capabilities"[191] - A total of 11 President's Office meetings and 21 special meetings were held to discuss and approve 62 important operational and management issues[191] Corporate Governance Code During the reporting period, the company complied with the code provisions of Appendix C1 "Corporate Governance Code" of the Listing Rules and adopted applicable best practice recommendations based on actual circumstances - The company complied with the code provisions of Appendix C1 "Corporate Governance Code" of the Listing Rules[192] Internal Control The company continuously improves its internal control organizational structure, system management, and control measures, optimizing its internal control system, conducting post-evaluation of systems and self-assessment of the internal control system in the first half, and establishing a sanctions risk blacklist database to strengthen sanctions risk prevention and control - The company continuously improves its institutional system, organizes post-evaluation of systems, and strengthens institutional governance[193] - The 2025 internal control system self-assessment work has been initiated to evaluate the applicability of the process framework, the reasonableness of control responsibilities, the adequacy of risk identification, and the effectiveness of control measures[193] - A sanctions risk blacklist database has been established and updated daily, with identity verification against the blacklist during business operations, and specialized training on sanctions risk prevention and control is continuously conducted[194] Profit and Dividend Distribution The company will not declare an interim dividend for 2025 - The company will not declare an interim dividend for 2025[195] Use of Proceeds The Group's proceeds from its initial public offering were fully utilized in 2022, and proceeds from non-public directed issuance of domestic shares and H-shares were fully used to supplement the company's core tier-one capital in 2021 - The HKD 19,696.7 million proceeds from the initial public offering were fully utilized in 2022, consistent with the prospectus commitments[196] - The RMB 40,000 million and HKD 2,449 million proceeds from the non-public directed issuance of domestic shares and H-shares were fully used to supplement the company's core tier-one capital in 2021[197][198] Future Business of Debt-to-Equity Swap Enterprises and Investment Plans The company will focus on deepening state-owned enterprise reform, optimizing asset liquidity, increasing disposal and revitalization efforts, and actively expanding market-oriented debt-to-equity swap businesses, targeting key industries and regions to leverage its distressed relief function and enhance investment returns - For acquired equity assets, the company will focus on deepening state-owned enterprise reform, seizing M&A opportunities, optimizing asset liquidity, and striving for reasonable equity restructuring returns[199] - For market-oriented debt-to-equity swap businesses, the company will closely follow national strategies, focus on key industries and regions, promote project implementation and high-quality resource reserves, helping enterprises reduce leverage, stabilize growth, and improve efficiency[199] Material Litigation and Arbitration During the reporting period, the company did not experience any litigation or arbitration matters that had a material adverse impact on its business, financial position, or operating results - No material adverse litigation or arbitration matters occurred during the reporting period[201] Material Acquisitions, Disposals, Mergers and Major Investments The Group's investments in Bank of China Limited and CITIC Limited have been disclosed in the notes to the financial information; other than these, no material asset acquisitions, disposals, mergers, or other major investment matters requiring disclosure occurred during the reporting period - The Group's investments in Bank of China Limited and CITIC Limited have been disclosed[202] - No material asset acquisitions, disposals, mergers, or major investment matters occurred beyond those already disclosed[202] Implementation of Equity Incentive Plans During the reporting period, the company did not implement any equity incentive plans - No equity incentive plans were implemented during the reporting period[203] Material Related Party Transactions During the reporting period, the company did not engage in any related party transactions requiring disclosure under Chapter 14A of the Listing Rules - No material related party transactions requiring disclosure occurred during the reporting period[204] Material Contracts and Their Performance During the reporting period, the company did not engage in any material entrustment, contracting, or leasing of assets from other companies, nor did other companies entrust, contract, or lease assets from the company, and there were no material guarantees requiring disclosure - No material entrustment, contracting, or leasing matters occurred during the reporting period[205] - No material guarantees requiring disclosure existed during the reporting period[206] Post-Reporting Period Events Subsequent to the reporting period, the Group completed the establishment and issuance of asset-backed securities on July 29, 2025, raising a total of RMB 10,010 million, and a Group subsidiary will redeem permanent debt capital issued in 2020 on September 30, 2025 - On July 29, 2025, the Group completed the establishment and issuance of asset-backed securities, raising a total of RMB 10,010 million[363] - A Group subsidiary will redeem USD 250 million in permanent debt capital issued on September 30, 2020, on September 30, 2025[363] Purchase, Sale and Redemption of Listed Securities During the reporting period, except as disclosed in this interim report, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and held no treasury shares at the end of the reporting period - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[208] - As of the end of the reporting period, neither the company nor its subsidiaries held any treasury shares[208] Securities Transactions by Directors, Supervisors and Senior Management The company has adopted the "Code for Securities Transactions by Directors, Supervisors and Relevant Employees" and has confirmed with all directors and supervisors that they have complied with this code and Appendix C3 "Model Code for Securities Transactions by Directors of Listed Issuers" of the Listing Rules throughout the reporting period - The company has adopted a securities transaction code, and all directors and supervisors confirmed compliance with the code during the reporting period[209] Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares and Underlying Shares As of June 30, 2025, none of the company's directors, supervisors, or chief executive held any disclosable interests or short positions in the shares or underlying shares of the company or any associated corporation - As of June 30, 2025, directors, supervisors, and the chief executive held no disclosable interests or short positions in shares[210] Review of Interim Report The company's interim condensed consolidated financial information for the six months ended June 30, 2025, prepared in accordance with International Financial Reporting Standards, has been reviewed by BDO Limited, Hong Kong, which issued an unmodified review report, and was approved by the Board of Directors and the Audit Committee of the Board - The interim condensed consolidated financial information has been reviewed by BDO Limited, Hong Kong, which issued an unmodified review report[211] - This interim report has been approved by the Board of Directors and the Audit Committee of the Board[212] Review Report and Interim Condensed Consolidated Financial Information Independent Review Report and Financial Information This chapter includes the independent review report and the interim condensed consolidated financial information for the six months ended June 30, 2025, comprising the income statement, statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows, and related notes, with the review report concluding no matters indicating non-compliance with IAS 34 - The independent review report concluded that nothing came to the attention of the reviewers that caused them to believe the interim condensed consolidated financial information was not prepared, in all material respects, in accordance with International Accounting Standard 34[219] - The interim condensed consolidated financial information is presented in the company's functional currency, RMB, and prepared on a going concern basis[237][239] - The Group adopted IAS 21 (Amendment) "Lack of Exchangeability" during the period, which did not have a material impact on the financial information[242][243]