Net Profit Recorded Significant Increase By 48.3%;
Consolidated its Leading Position in the PRC Aircraft Leasing Industry
HONG KONG — China Development Bank Financial Leasing Co., Ltd (“CDB Leasing” or the “Company”, stock code: 1606) is pleased to announce the audited consolidated annual results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 31 December, 2016 (the “Period”).
Financial Highlights：
– Total revenue and other income amounted to RMB 11,440.8 million, increased by 4.2% compared with last year.
– Profit before income tax amounted to RMB 2,067.7 million, increased by 59.1% compared with same period of last year.
– Net profit amounted to RMB 1,561.3 million, increased by 48.3% compared with last year.
– Non-performing asset ratio was 0.98%, decreased by 0.41% compared with last year.
During the Period under review, the Group maintained a steady increase in results. Total revenue and other income amounted to RMB 11,440.8 million, increased by 4.2% as compared with last year; profit for the year amounted to RMB 1,561.3 million, recorded a significant increase of RMB508.8 million, or 48.3% as compared with last year. Profit before income tax of the Group amounted to RMB2,067.7 million, representing a strong increase of RMB768.1 million, or 59.1% as compared with last year.
In 2016, the overall leasing industry was characterized by accelerated capital influx, rapid development, concentration on specific industries, more normative and reinforced regulations, etc. The Group further optimized its business layout, and the business structure mainly featured by Aircraft Leasing and Infrastructure Leasing became increasingly clearer. In addition, the group proactively explored paths for the development of Ship, Commercial Vehicles and Construction Machinery Leasing segment under the premise that assets safety is ensured.
As with aircraft leasing segment, the Group continued to expand its own aircraft portfolio, business scale and client network, and consistently enhanced the trading capability, accumulated experience in the industry, and consolidated its leading position in the PRC aircraft leasing industry. In 2016, total revenue and other income of the aircraft leasing segment amounted to RMB 5,896.5 million, representing an increase of RMB979.9 million, 19.9%, as compared with the last year. Also, the Group newly delivered 29 aircraft, as of December 31, 2016, the Group had a portfolio of 403 aircraft. In 2016, an Irish subsidiary of aircraft leasing was approved for establishment, which has turned CDB Leasing into the first financial leasing company that owns an overseas specialized subsidiary.
At the same time, the Group maintains a young aircraft fleet portfolio to sustain its competiveness. Through prudent client selection and implementation of effective management over leased assets, the aircraft leasing segment was able to maintain excellent asset quality. As of December 31, 2016, the non-performance asset ratio of the Group’s aircraft leasing segment was nil.
As with infrastructure leasing segment, during the Period under review, the business scale of the Group and profitability are moderately enhancing. Such business segment realized revenue and other income of RMB 3,535.2 million, representing an increase of RMB15.0 million, 0.4%, as compared to that last year. Also, the Group reinforced business expansion through business referral and strategic cooperation agreements and otherwise with the clients of China Development Bank and government clients. Meanwhile, the Group maintained quality assets for such business segment by its outstanding risk management capability. As of December 31, 2016, the non-performing asset ratio of the infrastructure leasing segment of the Group was nil.
As with ship, commercial vehicle and construction machinery leasing segment, during the Period under review, the Group focused on optimizing its business mix, selecting quality leased assets and offered lease financing to high quality clients with a prudent approach for ship, commercial vehicle and construction machinery leasing. In 2016, the revenue and other income generated from ship, commercial vehicle and construction machinery leasing business of the Group amounted to RMB 1,116.3 million.
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 mitigated operation risks in this segment, with satisfactory result achieved. As of December 31, 2016, the total revenue and other income of such segment amounted to RMB865.1 million.
Looking ahead, Mr. Fan Xun, Vice Chairman of the Board, Executive Director and President of CDB Leasing, said, “In 2017, it is still a year full of opportunities and challenges for the leasing industry. On one hand, the Group will utilize the driving force of favorable policies for industrial development. On the other hand, the uncertainties in the economic and financial environments and the increasing competition in the industry have also imposed higher requirements on leasing companies in terms of business development model, risk prevention and control and other aspects.”
Countering with the domestic and overseas economic environments and industry trends as aforesaid, the Group will continue to consolidate the development foundation, optimize the business layout, enhance the risk management and control, and improve the management efficiency; while taking its listing as an opportunity to accelerate the establishment of the marketized operation system and optimize the corporate governance. Besides, it will adapt to the requirements of the new policies under the new situations, enhance the establishment of professional abilities, facilitate the innovation of varieties and models of business and enhance the vitality and motivation of development, in turn enhancing the core competitiveness of the Company and pushing forward the long-term and stable development of the Group, in order to create a greater value for all Shareholders.