Revenue increased significantly of 34.0% Y-O-Y
Haitong UniTrust International Leasing Co., Ltd. (“Haitong UniTrust” or the “Company” and its subsidiaries together, the “Group”; Stock Code:1905) is pleased to announce the audited annual results for the year ended 31 December 2019 (“the Reporting Period”). In 2019, the Group realized revenue of RMB7,144.9 million, representing an increase of 34.0% from RMB5,332.3 million last year; and profit of RMB1,354.9 million with robust profitability.
Financial Highlights
– For the year ended 31 December 2019, revenue was RMB7,144.9 million, representing an increase of 34.0% as compared with 2018;
– Realized profit of RMB1,354.9 million and maintained its steady growth;
– Non-performing asset ratio and allowance coverage ratio of the Group were 1.08% and 265.19%, respectively;
– Actively rewards shareholders and distributed the interim cash dividend of 2019 with a total amount of RMB411,765,000.00. The Company also recommended to distribute annual dividend for the year of 2019 with a total amount of RMB362,353,200.00.
The Company’s capital strength improved significantly. With the issuance and Listing of H Shares and the continued profitability of the company, the total equity of the Group recorded RMB15,289.8 million as at Decemebr 31, 2019, representing an increase of 18.3% as compared with December 31, 2018. The Company’s asset scale continued to expand. The total assets of the Group amounted to RMB99,047.3 million as at December 31, 2019, representing an increase of 20.6% as compared with December 31, 2018.
During the Reporting Period, adhering to its objective of serving the real economy and strictly implementing its strategies of “One Body, Two Wings” and “One Big and One Small”, the Group put efforts in developing localized segments and further optimized its assets and investment structure. In order to support high-quality micro- and small-sized enterprises(“SMEs”) and retail customers, the Group focused on the development of business related to transportation & logistics, advanced manufacturing, healthcare, infrastructure and other key sectors. For the year ended December 31, 2019, the Group invested RMB57,786.4 million in its business, including investments in retail business and institutional business of RMB28,737.2 million and RMB29,049.2 million, respectively, achieving a balanced development between large- and medium-sized enterprises and SMEs.
In 2019, the Group continued to improve its comprehensive risk management system, implemented proactive risk management, embedded various risk management into its business operations and promoted a integration of big data and risk models with the approval system to further enhance its risk identification and quantitative management capabilities. In addition, the Group strengthened its risk prevention and handling capabilities through forward-looking asset allocation management, proactive response to risk events and increased efforts in asset disposals. Benefiting from the combined effect of comprehensive risk management, during the Reporting Period, the overall asset quality of the Group remained stable and the NPA ratio was maintained in a safe and controllable level with strong risk resistibility. As at December 31, 2019, the NPA ratio and allowance coverage ratio for NPAs was 1.08% and 265.19%, respectively.
As at December 31, 2019, the Group established credit relationships with 66 financial institutions and signed accumulative credit lines of approximately RMB93.1 billion, of which the unused credit balance was approximately RMB36.8 billion. The Group also continued to expand traditional financing channels and explore innovative financing methods to meet its development needs. For example, in 2019, the Group successfully issued the first asset-backed securities with credit protection contracts (“CDS”) and the first loan prime rate (“LPR”)-linked asset-backed notes in China. In addition, the Group continuously improved its liquidity risk management and debt structure management to achieve a balance between asset and liability duration.
In 2019, the successful issuance of the H shares of the Group further consolidated the capital strength of the Company, and the annual financing scale was equivalent to RMB52,654.4 million. Indirect financing withdrawals of RMB28.288 billion were realized through channels such as syndicated loans and bank acceptance bills, accounting for 53.7% of the total financing amount; direct financing of RMB24.366 billion were realized through issuance of asset-backed securities of RMB11.216 billion, short-term financing bonds of RMB1 billion, ultra short-term financing bonds of RMB7.5 billion, asset-backed notes of RMB950 million, private debt financing instruments of RMB2.7 billion and private equity corporate bonds of RMB1 billion, accounting for 46.3% of the total financing amount, in order to ensure the capital resources of the Company.
The Company was devoted to safeguard the interests of shareholders and maximize shareholders’ value. While creating good operating performance, the Company actively rewards shareholders. In 2019, the Company has distributed the interim cash dividend to all of its ordinary shareholders with a total amount of RMB411,765,000.00. In addition, the Board of Directors of the Company recommended to distribute cash dividend to all of its ordinary shareholders for the year of 2019 with a total amount of RMB362,353,200.00. The proposed distribution of annual dividend is subject to the approval of the Shareholders during the annual general meeting of 2019 to be held by the Company and is expected to be distributed no later than July 30, 2020.
Looking forward to 2020, the Group will pay close attention to the domestic and international economic conditions and continue to adhere to the principle of serving real economy with financial services, and proactively embrace challenges. While tamping the foundation of superior business, the Group will grasp new opportunities and identify demands of its customers for further development and adequately allocate resources. The Group will further consolidate its leading position and competitiveness and improve its high quality sustainable development.
About Haitong UniTrust International Leasing Co., Ltd.
Haitong UniTrust International Leasing Co., Ltd. is a large and steadily growing financial leasing company in China. As the sole leasing platform and one of the key strategic segments of Haitong Securities, a leading securities firm in China, the Company offers customer oriented and comprehensive financial services to a diverse group of customers across various industries by leveraging the investment banking expertise of the senior management of the Company. The Company strives to become a financial leasing company that leads industry innovation with the characteristics of capital market. The Group has been adhering to its role as a financial service provider of the real economy and has been grasping favorable opportunities arising from the major transformation of economy of China. The Group has also pursued the operating strategies of “cross-border thinking, promoting innovative development, strengthening its capacity and grasping business opportunities”. Based on its customer strategy of maintaining a balanced customer base, the Group has provided tailored services to a wide range of customers, including large- and medium-sized enterprises, micro- and small-sized enterprises and retail customers. The Company has continued to provide comprehensive financial services to customers in transportation & logistics, industrial sector, infrastructure, construction & real estate, health care and other industries by implementing the best practices of investment banking and strengthening the collaboration with its parent company, financial institutions and industry alliance partners. The Company has formed a competitive advantage with unique securities firm characteristics, including coordinated allocation of resources and assets and balanced growth of business scale and income.
