Company Overview - The registered capital of China Development Bank Financial Leasing Co., Ltd. is RMB 12.64238 billion[3]. - The company was established in 1984 and converted into a joint stock limited company on September 28, 2015, with H Shares listed on the Hong Kong Stock Exchange under stock code 1606[14]. - The company is headquartered at CDB Financial Center, No. 2003 Fuzhong Third Road, Futian District, Shenzhen, Guangdong Province, PRC[13]. - The controlling shareholder, China Development Bank, holds a 64.40% equity interest in the company[14]. - The company is subject to the regulations of the National Administration of Financial Regulation (NAFR) in China[14]. - The company’s main business activities are focused on financial leasing services[14]. - The company’s website is http://www.cdb-leasing.com[13]. Financial Performance - Total revenue for the reporting period was RMB 10,806,950 thousand, compared to RMB 11,559,902 thousand in the prior year, indicating a decrease of 6.5%[18]. - Profit for the reporting period was RMB 1,960,248 thousand, slightly up from RMB 1,949,716 thousand in the same period last year, showing a marginal increase of 0.1%[18]. - Basic and diluted earnings per share for the reporting period were RMB 0.16, compared to RMB 0.15 in the previous year, marking an increase of 6.7%[18]. - The Group's profitability has steadily improved, reflecting its strong asset quality and professional management[4]. - Operating income reached RMB 11.847 billion, representing a year-on-year decrease of 4.7%[37]. - Net profit reached RMB 1.960 billion, representing a year-on-year increase of 0.5%[37]. - The Group's capital adequacy ratio was 12.33% and the core tier-one capital adequacy ratio was 9.75% as of June 30, 2023[41]. Asset Quality and Management - The Group's asset scale has continued to grow since its listing in 2016, with a non-performing asset ratio maintained at 1% or below[3]. - The non-performing asset ratio was 0.78% as of June 30, 2023, remaining below 1% since listing, indicating stable asset quality[41]. - The ratio of allowance to non-performing finance lease related assets was 491.85%, significantly exceeding the regulatory requirement of 150%[30]. - Impairment losses significantly decreased to RMB (465,034) thousand from RMB (2,312,100) thousand in the previous year, a reduction of 80.0%[18]. - The Group's allowance for impairment losses on finance lease receivables increased by 5.3% to RMB 8,989.6 million as of June 30, 2023, compared to RMB 8,538.6 million at the end of 2022[76]. Business Segments - The Group's inclusive finance business provides support to small and micro-sized enterprises, promoting the development of construction machinery and vehicle leasing[4]. - The Group focused on supporting the green economy, advanced manufacturing, and strategic emerging industries to enhance service to the real economy[35]. - The Group's regional development leasing segment achieved new investments of RMB 22,263.7 million in the first half of 2023[117]. - The Group's investment in the Yangtze River Economic Belt region amounted to RMB 11,953.7 million in the first half of 2023, with an asset balance of RMB 55,632.7 million as of June 30, 2023[117]. - The Group's green energy and high-end equipment leasing segment achieved new business investment of RMB 10,288.2 million in the first half of 2023[131]. Strategic Focus and Future Plans - The Group aims to achieve effective improvement in "quality" and reasonable growth in "quantity" in the future[5]. - The Group is committed to a development strategy focused on marketization, professionalization, internationalization, and digitization[5]. - The Group will continue to uphold the concept of "seeking progress amidst stability" and optimize its business layout in the second half of 2023[184]. - The company plans to strengthen market, policy, and industry analysis to effectively respond to changing development environments in the leasing sector[184]. Corporate Governance - The Company held one Shareholders' general meeting on June 28, 2023, to approve the 2022 annual report, profit distribution plan, and financial budget for 2023[190]. - The roles of chairman and chief executive are separated, with Mr. Jin Tao appointed as president pending regulatory approval[187]. - The Company has adopted the Corporate Governance Code as its own code of corporate governance to enhance corporate value and accountability[186]. - The Company has proposed to nominate two executive Director candidates, two non-executive Director candidates, and three independent non-executive Director candidates for the third session of the Board of Directors[187]. Risk Management - The Group's risk management framework emphasizes a comprehensive approach with a "three layers of defense" strategy to mitigate various risks[139]. - The Group actively promotes a risk culture where everyone is responsible for risk control, aiming for a balance between risks and benefits[138]. - The Group's risk management system has been optimized, enhancing the identification and measurement of credit risks and improving the overall risk management level[141]. - The Group's liquidity risk management strategy includes maintaining moderate liquidity reserves and sufficient funding resources to meet repayment needs and business development[166]. Market Environment - The global economy is projected to grow by 3.0% in both 2023 and 2024, with the 2023 growth expectation revised upward from the April forecast[184]. - The leasing industry is expected to play a significant role in supporting the transformation and upgrading of the manufacturing sector under the "double carbon" strategy[184]. - The Chinese government aims to enhance domestic demand and prevent risks, focusing on quality improvement and reasonable growth in the second half of 2023[184].
国银金租(01606) - 2023 - 中期财报