On March 29, China Huarong held a performance conference in Beijing.
Liang Qiang, President of China Huarong, introduced in the analysis of business performance that in 2021, based on the continuous reduction of asset scale and liability scale, China Huarong had a good trend in income structure, continuous optimization of business structure, stable overall operation, slight increase in operating revenue and profit.
At present, the market's concern about the possible risks in the real estate industry has increased. The company's executives said that as the real estate industry enters a new stage of cycle adjustment, there will be a surge in non-performing asset business opportunities related to the debt resolution of real estate enterprises, the revitalization of inefficient and ineffective assets, enterprise structure adjustment and people's livelihood security, which will bring more non-performing asset acquisition sources and business opportunities to the company. However, under the current situation of the real estate industry, the company's stock housing related business is still under certain pressure.
Facing the "triple pressure" of steady economic growth this year, Chen Yanqing, vice president of China Huarong, said that macro-control emphasizes the goal of stabilizing economic growth, and the level of policy easing and support will be further increased to provide a favorable external environment for the main business of non-performing assets of asset management companies.
on the same day, China Huarong announced that in order to optimize the layout of state-owned financial capital, the company's shareholder, the Ministry of finance, plans to increase its 2.407 billion domestic shares (accounting for 3% of the company's total issued shares) to CITIC Group. After this equity change, the share ratio of the company held by the Ministry of finance is 24.76%; CITIC Group will hold 26.46% of the company's shares and become the largest shareholder of the company
Turn loss into profit
In terms of repairing the "three statements", stabilize income, reduce expenditure, and turn losses into profits. The group achieved an operating revenue of 93.1 billion yuan, a year-on-year increase of 23.4%; Operating expenditure was 83.634 billion yuan, a year-on-year decrease of 52.7%; The net profit was 1.986 billion yuan and the net profit attributable to the shareholders of the company was 378 million yuan, which turned losses into profits. Controlling assets, reducing liabilities, slimming and shrinking the balance sheet have achieved initial results. At the end of 2021, the group's total assets were 1.57 trillion yuan, a decrease of 4.4%; Total liabilities amounted to 1.46 trillion yuan, a decrease of 7.2%; The net assets were 104 billion yuan, an increase of 62%.
In terms of business operation, the contribution of the operating segment of non-performing assets is stable. The total revenue was 51.748 billion yuan and the pre tax profit was 7.206 billion yuan, maintaining the main position of performance contribution. The acquisition and disposal business increased the strength of asset collection, and the scale of non-performing asset acquisition in 2021 was 77.9 billion yuan; The annual revenue reached 8.4 billion yuan, an increase of 16%.
In terms of chemical insurance downsizing, we continued to promote chemical insurance downsizing, reduce the assets of non main businesses without advantages, and the provision for the reversal and write off of the group's debt assets was 13.581 billion yuan, a year-on-year increase of 49.5%. The capital increase was successfully completed, the capital strength was supplemented, and the capital adequacy ratio was restored to 12.95%, meeting the regulatory requirements.
In terms of asset quality, Wang Wenjie, vice president of China Huarong, introduced that after a comprehensive risk assessment and large amount of impairment provision in 2020, the company carried out asset classification and impairment provision in accordance with the normalization of asset quality and accounting standards in 2021. After continuously strengthening the disposal and resolution of stock risks throughout the year, the total assets of the three stages at the end of 2021 were 40.768 billion yuan, a decrease of 6.234 billion yuan compared with the end of 2020; The provision for impairment was 17.943 billion yuan, a decrease of 6.29 billion yuan compared with the end of 2020.
According to the company's business structure, the provision for restructuring assets characterized by credit risk accounts for a large proportion. By the end of 2021, the total assets of the company's reorganization were 310886 billion yuan; The provision rate was 10.7%, an increase of 1.6 percentage points over the end of 2020, mainly due to the fact that under the tightening market environment, the customers in the real estate industry with relatively high concentration of the company were affected, the quality of project assets decreased, and the provision increased accordingly.
will flexibly participate in the risk resolution of real estate enterprises and the revitalization of stock assets
At present, the market's concern about the possible risks in the real estate industry has increased. In this regard, Gao Gan, assistant president of China Huarong, said that as the real estate industry enters a new stage of cycle adjustment, there will be a surge in non-performing asset business opportunities related to the debt resolution of real estate enterprises, the revitalization of inefficient and ineffective assets, the adjustment of enterprise structure and the guarantee of people's livelihood, which will bring more non-performing asset acquisition sources and business opportunities to the company.
According to the new situation, the company will change the operation mode of housing related business focusing on liquidity assistance, based on the main responsibility and main business, truly give full play to the reorganization and revitalization function of asset management companies, take the principle of "legal isolation, substantive control, closed operation and reorganization and revitalization", isolate the underlying assets from debt enterprises, improve the transaction structure design and exit path, and strengthen the closed supervision of project repayment sources, Flexibly participate in the risk resolution of real estate enterprises and the revitalization of stock assets.
On the one hand, the company will implement the national policy orientation of "no speculation in housing", grasp the changes in the risk situation of the real estate market according to the requirements of the regulatory authorities, give full play to the core function of the disposal and revitalization of non-performing assets, focus on the national call, meet the functional orientation, and maintain economic and social stability based on the stock of non-performing assets related to housing and the direction of M & A and reorganization of high-quality projects Real estate projects that promote the virtuous circle and healthy development of the real estate industry.
On the other hand, based on its own stock and regional stock, it will carry out M & A and reorganization with strategic customers in the industrial chain around the upstream and downstream of real estate enterprises, so as to give full play to various functions such as risk isolation, trusteeship of troubled real estate enterprises, helping the M & A of insurance projects, providing mutual benefit debt assistance, establishing a special fund for real estate restructuring and revitalization, and focus on participating in the implementation of "guaranteed delivery of houses", uncompleted buildings Macro policies such as "replacing housing with social security" support and encourage businesses related to social and people's livelihood, serve local risk resolution and maintain social stability.
stock housing related business is still under certain pressure
Chen Yanqing, vice president of China Huarong, said that since 2021, the real estate market has faced great pressure, the pace of industry development has slowed down as a whole, and the company's stock of housing related projects are facing maturity pressure. Further promote the transformation of the company's business scale and effective proportion of the real estate industry. However, under the current situation of the real estate industry, the company's stock housing related business is still under certain pressure.
Chen Yanqing said that the company has comprehensively sorted out key customers and key projects related to housing and found out the base number of assets. According to the model arrangement, the overall mortgage and pledge rate of the company's stock housing related projects is sufficient, the coverage is relatively sufficient, and the ultimate risk is controllable. At present, the company actively seizes the current favorable time window and takes action as soon as possible. With the thinking of investment bank, the company uses substantive restructuring means to "find out the bottom number, legal isolation, substantive control, closed operation, reorganization and revitalization" of the assets of housing related projects. The measures and arrangements related to housing related work have achieved positive results.
Chen Yanqing said that the central government has repeatedly mentioned the "virtuous circle", indicating that the regulators have paid attention to the risks caused by the obstruction of the current market cycle path, and the future policies will still promote the steady and healthy development and virtuous circle of the real estate industry. Therefore, we preliminarily judge that the overall risk of the real estate industry is controllable.
return to the main business and focus on the "big bad" field
This year's steady economic growth is facing "triple pressure", which may have a certain impact on the non-performing asset acquisition industry.
in this regard, Chen Yanqing said that China's steady economic growth this year faces "triple pressure", and the pressure of risk prevention is still arduous. Macro-control emphasizes the goal of stabilizing economic growth, and the level of policy easing and support will be further increased to provide a favorable external environment for the main business of non-performing assets of asset management companies:
First, from the perspective of scale, the market space of non-performing assets continues to increase under the background of strong supervision. Under the economic transformation and "triple pressure", the differentiation of enterprise credit structure, the slowdown of new financing and the increase of maturing debt have increased enterprise credit risk and liquidity risk, and the supply growth of non-performing assets market can be expected.
Second, from the perspective of sources, the market supply of non-performing assets presents diversified characteristics. In the face of multiple pressures on China's economic development, supervision requires the prevention and resolution of systemic financial risks to "move forward". With the promotion of the pilot of single household corporate non-performing loan transfer and batch transfer of individual non-performing loans, we will support the cooperative disposal of non-performing assets and trust risk assets between SINOSURE funds, asset management companies and trust companies, serve the M & A needs of risk disposal projects of key real estate enterprises, allow them to participate in bankruptcy cases as members of the liquidation team, and encourage them to participate in risk resolution of small and medium-sized banks, Bring diversified market opportunities to asset management companies.
Third, from the perspective of structure, the differences in the transfer subject, industry and region of non-performing assets began to appear. Asset management companies should seize the opportunity of the new cycle of non-performing assets, enrich disposal means, do a good job in industrial and regional layout, and improve the quality and efficiency of disposal. Facing the new situation of economic development and new changes in the non-performing asset market, asset management companies will stick to their main business, actively play the dual role of preventing risks and resolving non-performing assets, and provide differentiated financial services to serve the development of the real economy.
China Huarong president Liang Qiang said that in the next stage, the company will focus on the "three tables" repair and the transformation and upgrading of its main business, focus on quality and efficiency, and adhere to high-quality development
First, insist on returning to the main business. The company's main business has broad market opportunities. Focusing on problem assets and institutions, and based on the functional positioning of financial assistance and risk resolution, the company will concentrate the capital resources recovered after the equity transfer of financial license subsidiaries on the main business of non-performing assets, maintain stable investment, do a good job in the recovery and revitalization of stock assets, deepen the adjustment of regional, product and customer structure while realizing the moderate stability of the main business scale, and strive to improve the development quality and performance.
Second, focus on the "big bad" field. On the basis of continuing to strengthen the acquisition and disposal of non-performing financial assets, actively participate in the restructuring and revitalization of problem real estate enterprises and problem assets, the closure of the three-year reform action plan of state-owned enterprises, the reorganization of enterprises in difficult capital markets, enterprise bankruptcy and reorganization, the optimal allocation of resources and energy, and the risk resolution of small and medium-sized financial institutions, so as to give full play to the functions of counter cyclical and financial assistance, Focus on the national 14th five year plan and the direction of industrial structure adjustment, do a good job in the layout of large categories of assets and support the development of the real economy.
Third, focus on resource integration. The company will actively and continuously transform itself into a resource integrator, a coordinator of comprehensive solutions and a value investor in the "big bad" industry, change from business to business, take the initiative in marketing, establish a multi-level marketing system, open up the industrial chain of the bad market, continue to build a healthy "big bad" industry chain ecosystem, and look for business opportunities in resource matching.
