China CITIC Financial Asset Management (2799) H1 2025 earnings summary

Executive summary

• Total revenue for H1 2025 reached RMB40,220.5 million, up 21.1% year-over-year; net profit attributable to equity holders was RMB6,167.6 million, up 15.7% year-over-year, or 27.5% excluding Financial Leasing segment.

• Annualized ROAE was 21.1% (up 2.7 percentage points), annualized ROAA was 1.1% (up 0.35 percentage points), and basic EPS was RMB0.066, reflecting improved profitability and operational efficiency.

• Profitability improved, driven by strong performance in distressed asset management and equity business.

Financial highlights

• Total income from continuing operations was RMB31,136.4 million, up 2.9% year-over-year; profit for the period was RMB5,506.1 million, up 4.4% year-over-year.

• Interest income rose 0.4% to RMB4,444.5 million; realized gains on distressed debt assets increased 101.6% to RMB1,721.1 million.

• Other income and net gains surged to RMB18,833.1 million, mainly from investment in associates.

• Total assets grew to RMB1,010,933.3 million (+2.7% from end-2024); equity attributable to equity holders increased to RMB60,277.7 million (+6.7%).

• Total expenses increased 22.1% to RMB35,121.0 million, with impairment losses under ECL model up 72.6% to RMB16,856.7 million.

Outlook and guidance

• The company expects continued macroeconomic headwinds globally but anticipates China’s economy to remain stable and positive in H2 2025.

• Regulatory changes and policy support are expected to expand distressed asset supply and create opportunities for AMCs, with 2025 designated as a “year of system construction.”

• The company will focus on high-quality development, risk mitigation, and industry transformation, aiming to become an industry benchmark.