China CITIC Financial Asset Management (2799) H2 2024 earnings summary

Executive summary

• Revenue reached RMB112.77 billion, up 60% year-over-year, with net profit attributable to equity holders at RMB9.62 billion, a 5.4x increase from the prior year, marking the best performance in six years.

• Asset structure improved, with distressed asset management accounting for 86.7% of total assets, up 34.8 percentage points since early 2022.

• Market value rose 62.5% in 2024, and the company ranked first in price-to-book ratio among Chinese financial firms listed in Hong Kong.

• Major strategic transformation included a new brand, organizational reforms, and a focus on core business capabilities.

Financial highlights

• Total income was RMB107.36 billion, up 53.5% year-over-year; net profit attributable to equity holders was RMB9.62 billion, up 444.6%.

• ROAE was 18.4%, up 14.8 percentage points; ROAA was 0.75%.

• Basic and diluted EPS were RMB0.11, compared to RMB0.01 last year.

• Total assets increased to RMB984.33 billion, up 1.7% from the previous year.

• Impairment losses under ECL model rose 129.2% to RMB70.95 billion.

• No cash dividend declared for 2024.

Outlook and guidance

• The company expects continued expansion in the distressed asset market, with policy support and industry transformation providing historic opportunities.

• Plans to focus on optimizing assets, increasing income, reducing distressed assets, and deepening reform to achieve significant improvements in quality and efficiency by 2025.