Group 1 - The core point of the article is the appointment of Zhang Jian as the Vice President of CITIC Financial Asset Management Co., Ltd., effective from December 31, 2025, following approval from the National Financial Regulatory Administration [2] - Zhang Jian has extensive experience in the financial industry, having held various management positions in banks since 1992, including roles at Bank of Communications and Industrial Bank before joining CITIC Financial Asset in 2018 [3] - The company is experiencing a positive growth phase, with total revenue for the first half of 2025 reaching 40.221 billion yuan, a year-on-year increase of 21.1%, and net profit attributable to shareholders at 6.168 billion yuan, up 15.7% [4] Group 2 - CITIC Financial Asset focuses on the core business of non-performing asset management, acquiring non-performing asset debts worth 125.2 billion yuan in the first half of 2025, maintaining a leading market share [4] - The company achieved significant growth in the disposal of non-performing asset packages, with a total of 12.941 billion yuan disposed of, resulting in a profit of 1.691 billion yuan, a substantial increase of 180.8% year-on-year [4] - The company also emphasizes its support for national strategies through its equity business, investing over 5 billion yuan in sectors like technology finance and green finance, with notable projects in the semiconductor and new materials industries [4]

Core Viewpoint - CICC has raised the profit forecast for CITIC Financial Assets (02799) for 2025 and 2026 by 16% and 20% to 11.5 billion and 11.4 billion respectively, due to growth in equity business income and declining funding costs [1] Group 1: Profit Forecast and Performance - The company expects a year-on-year increase in net profit attributable to shareholders of approximately 12.5% to 16.3% for 1H25, estimating net profit to be around 6 billion to 6.2 billion [2] - Excluding the impact of the financial leasing company, the year-on-year growth is projected to be about 23.9% to 28.2% [2] - The company aims to achieve its strategic goal of "significant improvement in quality and efficiency" by the end of 2025 and to become an industry benchmark by 2026-2027 [2] Group 2: Revenue Growth and Investment - The expected profit growth is attributed to increased income from equity business and a decrease in financing costs [2] - The company has increased its holdings in Bank of China and China Everbright Bank, with a significant rise in main business income [2] - The company has confirmed a one-time investment income of 17.9 billion to 20.6 billion for 1H25, compared to a loss of 0.1 billion in 1H24 [2] Group 3: Financing Costs and Risk Management - The company has strengthened its financing capabilities, with financing costs decreasing year-on-year [3] - The estimated financing cost for 2H24 is 3.63%, down 20 basis points year-on-year and 17 basis points compared to 1H24 [3] - The company has reported an increase in impairment provisions, with a total of approximately 21.8 billion for 1H25, enhancing its risk resistance capacity [3] Group 4: MSCI Inclusion and Fund Inflows - The company will be included in the MSCI China Index, with adjustments effective after August 26, potentially attracting passive fund inflows of approximately 110 million USD [3] Group 5: Financing Authorization - The company's shareholders have authorized the board to issue new shares, with a limit of 20% of the total number of issued domestic and H shares, valid until the next shareholders' meeting in 2024 or the end of the 2025 meeting [4]