Core Viewpoint - The trust industry in China has shown signs of recovery in Q1 2021, with a total profit of 18.059 billion yuan, marking an 8.73% year-on-year increase, despite ongoing regulatory pressures to reduce reliance on real estate and financial intermediation [1][2]. Profit Performance - In Q1 2021, the total profit of 68 trust companies reached 18.059 billion yuan, reversing the previous downward trend and showing an 8.73% increase compared to Q1 2020 [2]. - Historical data indicates that the net profit of the trust industry has been stable since 2015 but has declined since 2018, dropping from 82.411 billion yuan in 2017 to 58.318 billion yuan in 2020, a decrease of 19.79% from 2019 [2]. Revenue Insights - The operating revenue for Q1 2021 was 28.592 billion yuan, reflecting an 11.84% year-on-year growth [3]. - Trust business revenue remains the primary source of operating income, contributing 21.304 billion yuan in Q1 2021, which is an 11.78% increase from the previous year [3]. Asset Scale Trends - As of the end of Q1 2021, the total trust asset scale was 20.38 trillion yuan, continuing a downward trend since 2018, with a decrease of 5.87 trillion yuan from the peak in Q4 2017 [1]. - The year-on-year decline in trust asset scale was 4.46% in Q1 2021, an improvement from the 5.38% decline in Q1 2020 [1]. Real Estate Trust Business - The scale of real estate trust business has been declining, with a balance of 2.17 trillion yuan as of Q1 2021, down 15.75% year-on-year, and its proportion in total trust assets decreased to 13.60% [4]. - The trust funds directed towards financial institutions also saw a decline, with a balance of 1.99 trillion yuan, a 17.13% decrease year-on-year [4]. Investment Trends - There has been a significant shift in the utilization of trust funds, with the proportion of loans decreasing by 6.24 percentage points, while investments in trading financial assets and available-for-sale investments increased [4][5]. - The changes in investment methods indicate a trend towards enhancing the investment function of trusts [5]. Future Outlook - The trust industry is expected to undergo adjustments in business structure, profit models, and internal support systems, emphasizing the need for differentiated development and enhanced organizational capabilities [6].