Optimized Business Model Innovation and Efficiency with Net Profit Increased by 17.3% to RMB1294.1 million
HONG KONG — China Development Bank Financial Leasing Co., Ltd (“CDB Leasing” or the “Company”, stock code: 1606) is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the “Group”) for the six months ended June 30, 2017 (“the Period”).
Financial Highlights：
– total revenue of the Group amounted to RMB5,777.8 million, increased by 8.6% as compared with the same period of last year
– Net profit increased by17.3% to RMB1294.1 million
– Profit before income tax amounted to RMB1599.5million，increased by 20.4% as compared with the same period of last year
– Non-performing asset ratio of the Group was 1.11%, lower than that of the same period of last year
During the Period, due to the addition of leased assets due to new businesses in the second half of 2016 and the first half of 2017, and the overall income level of the business remained stable, the Group recorded total revenue of RMB5777.8 million, representing an increase of 8.6% as compared with the same period of last year; profit before income tax of the Group amounted to RMB1,599.5 million, representing an increase of 20.4% as compared with RMB1,328.6 million for the same period of last year. Net profit of the Group achieved satisfactory growth and amounted to RMB1,294.1 million, representing an increase of 17.3% as compared with the same period of last year. The Group enhanced its professionalism in various business areas including aircraft, shipping, construction machinery and vehicles, and new energy. The business of infrastructure sector was further consolidated. The total lease financing to lessees for the first half of 2017 amounted to RMB20,066 million, representing the highest level since the year of 2013. China Development Bank Aviation Financial Leasing Company Limited, our subsidiary, was officially incorporated in Dublin on June 23, 2017, which indicated the completion of the international team building of our aviation business. The financial leasing project of eight large ore carriers (Very Large Ore Carrier, our VLOC) with Fortescue Metals Group was awarded the “Annual Transaction Award” issued by Marine Money. At the meantime, the Group expanded urban infrastructure leasing business and new energy leasing projects in several cities. During the Period, the Group paid great attention to project risk from the very beginning and established a special department which was responsible for the implementation of various works such as collection, elimination, disposal and sale of non-performing assets. The above-mentioned risk control measures achieved positive effects after the implementation. As of June 30, 2017, the non-performing asset ratio of the Group was 1.11%, slightly lower than that of the same period of last year.
Mr. Fan Xun, Vice Chairman of the Board, Executive Director and President of CDB Leasing, said, “In the first half of 2017, encountering with the intricate trend of the macro-economy, the Group actively tackled with both internal and external severe and complicated situation, further improved its system and mechanism to facilitate the development of collectivized organization structure, made great efforts on business development, optimized business layout and improved risks prevention and control, achieving good operating results.”
As with aircraft leasing segment, the total assets of the Aircraft Leasing segment of the Group amounted to RMB62,957.7 million and the total revenue and other income of the Aircraft Leasing segment amounted to RMB3,022.9 million, representing an increase of 7.5% compared to the same period last year. In the first half of 2017, the Group continued to expand its aircraft portfolio, business scale and client network while enhancing its trading capability and the industry experience of its staff. During the Period, the Group delivered 18 aircraft with a portfolio of 311 aircraft, consisting of 197 owned aircraft, 13 managed aircraft and 101 committed aircraft, with committed aircraft comprised of 94 direct orders out of which manufacturers and seven committed sale-and-leaseback transactions.
As with infrastructure leasing segment, during the period, total revenue and other income of this segment amounted to RMB2,025.1 million, representing a year-on-year growth of 17.5%. As being one of the core business segments of the Group, the Group put greater efforts on the development of new infrastructure leasing and developed its business focusing on clients from China Development Bank’s clients and government clients through business referral and strategic cooperation agreements. Meanwhile, as of June 30, 2017, there were no non-performing assets in the Infrastructure Leasing segment of the Group.
As with ship, commercial vehicle and construction machinery leasing segment, the Group focused on optimizing its business mix, carrying out business model innovation, selecting quality leased assets and offering lease financing to high quality customers. Total revenue and other income of Ship, Commercial Vehicle and Construction Machinery Leasing segment amounted to RMB513.9 million, which decreased by 7.2% as compared to that of the same period of last year. The annualized return on segmental total assets before tax was 2.15%, improving the profitability of this segment significantly as compared to that of 2016.
As with other leasing segment, the Group actively controlled the growth in scale of the Other Leasing Business segment, actively prevented and mitigated operational risks in the Other Leasing Business segment, and achieved satisfactory results. The annualized return on segmental total assets before tax witnessed improvement in yield as compared to that of 2016.
Looking ahead, Mr. Fan Xun said, In the second half of 2017, the domestic economy in the PRC will encounter with a number of positive factors, such as the improvement on external environment and stability, and the implementation of national strategies including “Belt and Road Initiative”, Xiong’an New Area and Guangdong-Hong Kong-Macao Greater Bay Area which will bring us a lot of opportunities along with the promotion of economic restructuring and development, but at the same time, the domestic economy is also facing challenges of various risks with certain uncertainties. The Group will expand its business in a steady pace and enhance its level of professional development. Based on the positioning of our business, the Company will take the initiative to focus on certain industrial departments and major clients, follow policy direction and make efforts to enlarge the scope and extent of the assessment and work involvement of project development. Through effective risk management and control and strict defense of the risk bottom line, the Company comprehensively pushes forward the establishment of risk management system in every aspect of business development, assessment, internal control and compliance. The Group will optimize the balance of assets and liabilities, and thoroughly promote cost reduction and efficiency improvement, primarily to enhance the revenue level, expand the revenue source and financing channels, as well as continue to reasonably reduce unnecessary expenses and costs. In addition, the Group will strengthen its infrastructure so as to enhance the capability and the level of operating management.