Core Viewpoint - Hebei Asset Management Co., Ltd. has submitted its initial public offering (IPO) application to list on the Hong Kong Stock Exchange, marking the first attempt by a local Asset Management Company (AMC) to go public in Hong Kong [1][2] Company Overview - Established on November 24, 2015, Hebei Asset is the only local AMC in Hebei Province with the qualification to acquire and manage non-performing financial assets [2] - The company is controlled by the Hebei Provincial State-owned Assets Supervision and Administration Commission and is regulated by the local financial management bureau [2] Financial Performance - As of the end of 2024, Hebei Asset's total assets amounted to 7.556 billion yuan, with liabilities of 5.039 billion yuan, resulting in a debt-to-asset ratio of 66.69% [2] - The company reported a significant increase in non-performing asset management revenue, which grew by 130% year-on-year to 512 million yuan in 2024, achieving a profit of 204 million yuan [4] - However, in 2023, the company faced a decline in revenue from non-performing asset management, which fell by 48% to 222 million yuan, leading to a loss of 145 million yuan [4] Market Position - Hebei Asset ranks second in the province in terms of market share for newly acquired non-performing assets, holding 24.4% of the market, and ranks first among local AMCs with a 47.2% share of new acquisitions from small and medium-sized banks [2][3] - The market size for non-performing asset management in Hebei Province is projected to grow from 222.2 billion yuan in 2024 to 322 billion yuan by 2029, with a compound annual growth rate of 7.7% [3] Business Strategy - The company aims to enhance its business scope and revenue sources by expanding into new business lines related to non-performing assets [4] - Hebei Asset's revenue is primarily derived from non-performing asset management, with 86.2% coming from asset disposal, 13.7% from restructuring, and a minimal 0.1% from consulting and custodial services [4] Regulatory Environment - The local AMC industry is facing stricter regulatory scrutiny, with new guidelines being proposed for asset acquisition, disposal, and financing [5] - The company acknowledges that its operations and future prospects may be influenced by regulatory changes in the non-performing asset management sector [5]