Core Insights - China Cinda Asset Management Co., Ltd. reported its mid-year results for 2025, highlighting that its non-performing asset management business is the core revenue source, accounting for 53.8% of total revenue, while financial services revenue slightly decreased to 46.7% [1] Financial Performance - As of June 30, total assets reached 1.68 trillion yuan, a 2.62% increase from the end of the previous year, while total liabilities grew by 2.80% to 1.46 trillion yuan [1] - The net profit attributable to shareholders for the first half of the year was 2.281 billion yuan, reflecting a year-on-year growth of 5.78% [1] - The total revenue from the non-performing asset management business was 18.491 billion yuan, with a year-on-year increase of 0.30% [1] Non-Performing Asset Acquisition - The company expanded its acquisition channels, with new acquisitions of financial non-performing debt assets amounting to 25.506 billion yuan, a significant year-on-year increase of 56.80% [1] - The company acquired non-performing personal loans from 342,000 households, involving a principal amount of 4.7 billion yuan [1] Support for Financial Institutions - In the context of supporting small and medium-sized financial institutions, the company acquired non-performing debt principal and interest from 54 local small and medium-sized banks, totaling nearly 60 billion yuan, which is an 85.4% increase year-on-year [2] - The company participated in due diligence and valuation for several high-risk small and medium-sized banks, providing reform and risk mitigation suggestions [2] Real Estate Risk Mitigation - The company implemented 19 real estate risk mitigation projects in the first half of the year, investing 5.4 billion yuan, which resulted in the delivery of 14,000 housing units and the resumption of projects worth over 75.7 billion yuan [2] - Four real estate relief funds were established to support key projects in risk mitigation and asset revitalization [2]

Core Viewpoint - The financial performance of CITIC Financial Asset Management Co., Ltd. for the fiscal year 2024 has significantly exceeded market expectations, indicating a successful transformation and a return to high-quality development [1][2]. Financial Performance - For the year ending December 31, 2024, CITIC Financial Asset reported total revenue of 112.766 billion yuan, a 60% increase year-on-year, and a net profit attributable to shareholders of 9.618 billion yuan, which is 5.4 times that of the previous year [1]. - The total assets at year-end reached 984.329 billion yuan, an increase of 16.225 billion yuan from the previous year, with an average return on equity rising by 14.8 percentage points to 18.4% [1]. - The company achieved a 53.5% growth in revenue from continuing operations, with core financial indicators surpassing capital market expectations [1]. Business Strategy and Structure - CITIC Financial Asset has fully divested from financial services, focusing on non-performing asset management and asset management and investment divisions, which now drive its operations [3]. - The non-performing asset management business generated 90.671 billion yuan in revenue, accounting for 84.4% of total revenue, with assets in this division totaling 833.185 billion yuan, representing 86.7% of total assets [3]. Market Position and Growth - The company maintains a leading market position in the non-performing asset sector, with a debt balance of approximately 180 billion yuan in non-performing asset claims and a market share that remains among the top in the industry [4]. - CITIC Financial Asset has improved its asset quality and risk resistance, with a 30% reduction in non-performing asset balance and a doubling of the provision coverage ratio to 226% [4]. Social Responsibility and Strategic Support - The company plays a crucial role in supporting national policies, contributing to financial risk prevention and economic stability, while also achieving economic and social value [5]. - CITIC Financial Asset has actively participated in initiatives to alleviate financial distress in the real estate sector, ensuring the delivery of 66,000 housing units and addressing wage arrears for migrant workers [5]. Industry Outlook - The current economic environment presents significant opportunities for asset management companies (AMCs) to expand their non-performing asset acquisition business, driven by ongoing risks in various sectors [7]. - Regulatory policies are encouraging AMCs to broaden their scope, enhancing their capabilities in acquiring, managing, and disposing of non-performing assets [7]. Market Response - The capital market has responded positively to CITIC Financial Asset's new brand image, with a 62.5% increase in stock price and active trading volume exceeding 100 million shares over ten consecutive trading days [8]. - The inclusion of CITIC Financial Asset in multiple Hang Seng indices is expected to diversify fund allocations and attract more capital, particularly from southbound funds [8].