On July 22nd, COAMC released the business figures for the first half of 2014. COAMC has maintained a strong momentum of growth. It registered a profit of RMB 7.648 billion, up by 39% compared with the same period of last year. President Zhang Zi’ai said that good business performance enhanced the foundation of our shareholding reform. COAMC is now in close contact with regulatory authorities to accelerate its reform and work hard to get the approval at an early date.
COAMC subsidiaries are doing quite well and making greater contribution to the whole corporation.
In the first half of 2014, subsidiaries contributed a lot to the overall growth of COAMC’s business. The profit attributable to the parent company was RMB 2.909 billion, an increase of 96% compared with the same period of last year. Their contribution rate increased from 27% to 42%. China United Insurance registered a profit of RMB 1.126 billion in the first half of this year, which had already exceeded the total profit it made last year. China Orient International made a profit of RMB 326 million, up by 1.67 times. In the first half of 2014, COAMC’s yearly rate of return on equity reached 27.58%, while the rate of return on asset reached 4.97%, both of which have increased significantly compared with the same period of last year.
By the end of this June, the total asset of COAMC reached RMB 294.7 billion, increased by RMB 56.6 billion compared with the beginning of this year. The net asset was RMB 48.2 billion, up by RMB 7.3 billion compared with the beginning of this year. A steady growth momentum has been maintained.
President Zhang Zi’ai said it was such a delight that our business could maintain robust growth in the face of faster economic restructuring and mounting downward pressure of China’s economy. The subsidiaries are doing especially well, which showed that our market-oriented reform was very effective.
Five strategic opportunities will be the focus in the next 6 months.
President Zhang Zi’ai said that COAMC will actively but also prudently explore new growth points for business expansion. Five strategic opportunities will be focused upon.
First, the increasing non-performing assets in the market have offered special opportunities for us to act as a stabilizer of the financial system by facilitating the reconstruction of troubled companies through investment banking business. Second, the mixed ownership reform of state-owned companies is another great opportunity for us to step in. “Debt + Equity” model could be used and more opportunities would emerge for finance consultancy business. Third, opportunities for M & A have increased in the process of economic restructuring and industrial upgrading. This will facilitate the development of our high value-added investment banking business. Fourth, more opportunities are concealed in the renovation of shantytowns and PPP Projects (Public Private Partnership). Fifth, COAMC can response to the government’s appeal by using its financial service network to support the development of SMEs.
President Zhang Zi’ai said that COAMC had become a comprehensive financial service group with a wide range of business including NPL disposal, insurance, securities, trust, leasing, micro-loans, credit rating, and investment banking (in Hong Kong). COAMC can facilitate China’s economic restructuring and industrial upgrading with its comprehensive financial services.
Zhang Zi’ai pointed out: “In the second half of 2014, the downward pressure still exists and there will be a lot of market uncertainties. Thus risk management will continue to be our top priority. Sufficient liquidity is needed to guard against possible major fluctuations in the market.”
