China CITIC Financial Asset Management (2799) H1 2024 earnings summary

Executive summary

• Net profit attributable to shareholders reached RMB5,332 million for H1 2024, up 210.7% year-over-year, driven by optimized asset structure, improved risk management, and positive capital market conditions.

• Total income from continuing operations was RMB30,257 million, down 7.3% year-over-year, mainly due to a decrease in other income and net gains.

• The financial leasing business was classified as a discontinued operation following a 60% equity transfer agreement with CITIC Group, contributing RMB672.8 million to profit after tax.

• The company completed the first step of its “three-step in two years” strategy, focusing on quality and efficiency improvements.

Financial highlights

• Net profit for the period was RMB5,272 million, compared to a loss of RMB5,895 million in H1 2023.

• Annualized ROAE was 21.2% and annualized ROAA was 1.0%, both significantly improved from negative ratios last year.

• Basic and diluted EPS were RMB0.056, compared to a loss per share of RMB0.071 in H1 2023.

• Total assets increased 9.0% to RMB1,055,342 million as of June 30, 2024.

• Total liabilities rose 9.0% to RMB1,002,637 million, with borrowings at RMB669,439 million and bonds/notes issued at RMB174,520 million.

• No interim dividend declared for 2024.

Outlook and guidance

• The distressed asset industry is expected to see increased supply, especially from small and medium banks, local debt, and real estate, with regulatory support and market opportunities for high-quality growth.

• The company will focus on balancing risk and development, deepening reform, optimizing asset structure, and enhancing risk management to achieve its strategic goals.

• The company expects continued challenges in global and domestic markets, with high interest rates and regulatory changes.