China Huarong reaches out to the Road – and profits

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China Huarong Asset Management Co., Ltd., a Mainland-based company that set up its first financial asset management in Macau last December, saw a 26.3 per cent year-on-year increase in its total income for the year, hitting RMB95.2 billion (US$13.82 billion/MOP110.72 billion), according to the group’s filing with the Hong Kong Stock Exchange.
The increase was ‘mainly due’ to a combination of factors, it says, including income from distressed debt assets classified as receivables, investment and interest income, that from commissions and fees as well as fair value changes on financial assets and gains on disposal of associates.
The group’s local operations were not included in the filing given its recent establishment.
Net profit attributable to the equity holders of the company also increased by 35 per cent to RMB19.6 billion for the 2016 year.
Huarong further noted that its operating results ‘reached a record high’ during the year, with total assets amounting to RMB1.41 trillion, a 62.9 per cent hike year-on-year.
In line with its goal to develop and ‘valid business interconnections’ between institutions of Huarong serving Greater China – in Hong Kong, Macau and Taiwan – as part of the Belt and Road strategy, the company established several subsidiaries in 2016, including China Huarong (Macao) International Holdings Limited.
‘China Huarong actively kept in line with the national development strategy, enhanced the collaborative relationship with local governments and state-owned enterprises and integrated industry and finance through the establishment of multiple integrated financial services platforms,’ notes the filing.
Currently, China Huarong has 31 branches across 30 provinces, autonomous regions, and municipalities in China as well as in Hong Kong and the MSAR.
Some of the principal activities of the group include acquiring and entrusting to manage, invest and dispose of both financial and non-financial institution distressed assets, bankruptcy management, and investment and securities dealing.