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China’s Huarong posts $ 24.5 million first-half profit after annual loss By Reuters

© Reuters. FILE PHOTO: The China Huarong Asset Management Co logo is seen at its office in Beijing, China, on April 16, 2021. REUTERS / Thomas Peter

BEIJING (Reuters) – China Huarong Asset Management Co Ltd posted first-half profit of 158.3 million yuan ($ 24.46 million) after a deep loss in 2020 and outlined plans to shore up its balance sheet in a presentation of Hong Kong change on Sunday.

In the second half of 2021, Huarong will “actively focus on core business” and plans to divest subsidiaries with non-core businesses in the near future, he said.

Huarong is one of four distressed state debt managers and counts China’s Ministry of Finance as its largest shareholder.

It warned investors of massive annual losses of $ 16 billion on Aug. 18, citing a provision for credit impairment partially related to the disposal of risk assets linked to its former chairman Lai Xiaomin.

Sunday’s annual earnings statement, which confirmed the deep loss, was delayed for nearly five months due to restructuring uncertainties.

As part of an official restructuring plan, Huarong said earlier this month that a state consortium led by CITIC Group Corp would take stakes in the company.

($ 1 = 6.4711 renminbi)

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