China Development Bank Financial Leasing Announces 2016 Interim Results

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Monday, 5 September 2016, 11:41 HKT/SGT

Net profit recorded stable growth with focus on twin-driver business development model

HONG KONG, Sept 5, 2016 - (ACN Newswire) - 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, 2016.

Financial Highlights：
- Total revenue and other income amounted to RMB5,535.5 million, more or less the same as the corresponding period of last year.
- Profit before income tax amounted to RMB1,328.6 million, increased by 5.7% compared with same period of last year.
- Net profit amounted to RMB1,103.6 million, increased by 9.3% compared with same period last year.
- Non-performing asset ratio was 1.12%, lower than that of corresponding period of last year.

During the period under review, total revenue and other income of the Group amounted to RMB5,535.5 million, more or less the same as the corresponding period of last year. Profit before income tax of the Group amounted to RMB1,328.6 million, representing an increase of 5.7% as compared with RMB1,257.2 million for the same period last year. Net profit of the Group for the first half of 2016 amounted to RMB1,103.6 million, representing an increase of 9.3% as compared with RMB1,010.1 million for the same period last year.

For the first half of 2016, the Group set aircraft leasing and infrastructure leasing as our two core segments, adopted a prudent approach for ship, commercial vehicle and construction machinery leasing and proactive control over expansion of other leasing business, which further optimized the business structure. Besides, the Company increased its efforts in risk management and control, and the disposal of non-performing assets, achieving positive results. As at June 30, 2016, the Group's non-performing assets ratio was 1.12%, which is lower than the 1.67% in the same period in 2015, leading to an improvement of its asset quality.

Mr. Fan Xun, Vice Chairman of the Board, Executive Director and President of CDB Leasing, said, "During the period under review, in face of complex macroeconomic situation, the Company's overall strategy was to ensure development, prevent risks, increase revenue and strengthen its foundation. Under the premise of protecting our assets, the Group achieved stable business growth through accelerating and optimizing its business deployment, deepening reforms, innovation and business transformation, as well as strengthening risk prevention."

As with aircraft leasing segment, during the period under review, total revenue and other income of this segment amounted to RMB2,812.5 million, representing an increase of 18.6% as compared to the same period of last year. The revenue and other income of the aircraft leasing segment amounted for 50.8%, representing an increase of 7.9% as compared to the same period of last year. In the first half of 2016, the Group continued to expand its owned aircraft portfolio, business scale and client network, and enhanced its trading capability and industry experience. The Group delivered 14 aircrafts and sold five aircrafts during the period.

As with infrastructure leasing segment, during the period under review, total revenue and other income of this segment amounted to RMB1,723.1 million. The annualized return on segmental total assets before tax was 2.16%, which increased by 0.15% over 2.01% for 2015. In the first half of 2016, the Group put greater efforts on the development of infrastructure leasing. There has been a substantial increase on put volume of business compared to the same period of last year. As at June 30, 2016, there were no non-performing assets in the infrastructure leasing segment of the Group.

As with ship, commercial vehicle and construction machinery leasing segment, during the period under review, 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. As at June 30, 2016, total revenue and other income of this segment amounted to RMB553.5 million. The annualized return on segmental total assets before tax was 0.75%. The profitability of this segment has been well improved.

As with other leasing segment, during the period under review, the Group actively controlled the growth in scale of other leasing business segment. It also actively prevented and mitigated operation risks in this segment, with satisfactory result achieved. As at June 30, 2016, total assets of the segment of other leasing business to RMB14,679.6 million.

Looking ahead, Mr. Fan Xun said, "In the second half of 2016, the Group's work will focus on the following aspects, leveraging its listing as an excellent opportunity and enhancing its corporate values as the core element. Firstly, on the basis of consolidating its existing advantageous businesses, the Group will optimize its business deployment and explore innovative profit models. According to principle of "twin-driver, taking protective and suppressive measures, focusing on earnings, and stringent risk control", the Group will strengthen its project development, consolidate and expand the market share of its advantageous business segments, and explore new business areas and innovate profit models under the premise of risk control. Secondly, the Group will strengthen its risk management and improve its internal control systems by enhancing its overall risk management and control systems in line with the best practices of listed companies. Thirdly, the Group will optimize its assets and liabilities to promote cost reduction and efficiency improvement. With respect to asset management, the Group's asset management will play the role of adjusting and guiding in business development, and optimize its asset structure by exploring asset securitization business. With respect to liabilities, the Group will continue deepening its cooperation with various financial institutions to broaden its financing channels and continuously improve the proportion of direct financing and reducing the comprehensive financing cost of domestic and foreign currencies. Fourthly, the Group will optimize the allocation of resources, continuing to improve its competitive strength."

About China Development Bank Financial Leasing Co., Ltd.

Founded in 1984, China Development Bank Financial Leasing Co., Ltd. ("CDB Leasing") was one of the first leasing companies in the PRC and one of the first CBRC-regulated leasing companies. CDB Leasing is the sole leasing business platform and one of the key strategic business segments of CDB, dedicated to providing comprehensive leasing services to high-quality customers. Being a pioneer and a leader in the PRC leasing industry, CDB Leasing established prudent and robust internal control and risk management systems, and CDB Leasing's business segments are Aircraft Leasing, Infrastructure Leasing, Ship, Commercial Vehicle and Construction Machinery Leasing and Other Leasing Business. According to Frost & Sullivan, CDB Leasing was the largest CBRC-regulated leasing company in the PRC in terms of total revenue in 2013, 2014 and 2015, respectively. The Company successfully listed on the main board of HKEX on July 11th 2016.

Topic: Press release summary Sectors: Daily Finance, Daily News
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