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CDB Leasing Announces 2020 Annual Results

HONG KONG, Mar 31, 2021 - (JCN Newswire) - China Development Bank Financial Leasing Co., Ltd. (stock code: 1606.HK; "CDB Leasing" or "the Company", together with its subsidiaries as "the Group") announces its audited consolidated results for the year ended December 31, 2020 (the "Reporting Period").

Results Highlight
For the year ended December 31, 2020
-- Total assets reached RMB303.3 billion, representing an increase of 16.08% YOY;
-- Operating income was RMB19.329 billion, representing an increase of 5.37% YOY;
-- Net profit amounted to RMB3.268 billion, representing an increase of 11.24% YOY;
-- Total new lease financing to lessees amounted to RMB104.4 billion, representing an increase of 11.96% YOY;
-- Return on average equity was 12.50%, representing an increase of 0.72 percentage point as compared with that as of the end of last year;
-- Non-performing asset ratio was 0.80%, representing a decrease of 0.09 percentage point as compared with that as of the end of last year.

During the Reporting Period, the Company's total assets exceeded RMB300 billion for the first time, and amounted to RMB303.3 billion, representing an increase of 16.08% YOY. Operating income was RMB19.329 billion, representing an increase of 5.37% YOY. Net profit amounted to RMB3.268 billion, representing an increase of 11.24% YOY. Return on average equity was 12.50%, representing an increase of 0.72 percentage point as compared with that as of the end of last year. Total new lease financing to lessees amounted to RMB104.4 billion, representing an increase of 11.96% YOY. Non-performing asset ratio was 0.80%, representing a decrease of 0.09 percentage point as compared with that as of the end of last year. Withstood the impact of the COVID-19 pandemic, the Company did a solid job in pandemic prevention and control, and paid close attention to operation and management. Its annual operating performance bucked up and reached a new high, while continuously achieving steady and high-quality development.

During the Reporting Period, CDB Leasing actively served to build a new development pattern, actively supported the real economy, made an effort to build a "customer-centered" business development model, continued to focus on its strengths in aviation, shipping, new energy, environmental protection and infrastructure, as well as increased the new investment, which lead to a new success in business results. The new business investment in the whole year amounted to RMB104.4 billion, and took the lead in the financial leasing industry in realizing the annual new investment exceeding RMB100 billion, representing an increase of 11.96% as compared with that of 2019. In the meantime, the Company continued to strengthen the platform's capabilities and financial position, and maintained the high-level credit ratings by S&P (A), Fitch (A+) and Moody's (A1).

In terms of the aviation business, although the competitive environment is still fierce, benefited from its scale in the industry and the strength of the wider CDB Group, the Company also acted quickly in realigning its orderbook to the change in the industry outlook in close co-operation with manufacturers. During the Reporting Period, the aircraft leasing business systematically promoted the five-year planning, steadily launched the investment and continued subletting of expired aircraft, successfully sold 18 aircrafts, and further optimized the fleet structure. In 2020, the Company signed new lease transactions for a total of 77 aircrafts with 20 customers.

The Company started the construction of ship leasing business system in right time, strengthened the tracking research on the development trend of shipping market, established the quality evaluation system of operating lease assets and the ship value evaluation model, and examined the pre-credit approval mechanism of operating lease business. The above measures have greatly improved the management and professional ability of the Company's ship leasing business segment, further standardized the operation of ship leasing business, especially ship operating leasing business. The Company delivered 32 ships throughout the year, further increasing the proportion of mainstream ship types.

As for Infrastructure leasing business, the Company actively supported key areas such as Yangtze River Economic Belt, Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei, etc., and served the coordinated development of regions. In addition, the Company strengthened the development of new energy projects, continuously improved its specialization in the field of new energy power generation, and fulfilled the development requirements of green finance actively.

The Company adhered to its functional orientation, actively approached the market, strengthened the management of existing assets, optimized the allocation of incremental resources, improved various management processes and systems, and effectively promoted the sustainable and healthy development of inclusive finance business. At the same time, the Company vigorously promoted the digital transformation of inclusive finance business, further strengthened the refined management of the whole business process, and laid a solid foundation for realizing the digital management of inclusive finance business. The annual investment was RMB17.9 billion, representing an increase of 14% YOY, leasing more than 41,000 sets of equipment and serving nearly 13,000 small, medium and micro enterprises.

Fulfills social responsibility and corporate responsibility
During the Reporting Period, the Company has provided support for more than 50 key projects greatly affected by the pandemic and about 4,000 customers in inclusive financing, such as rent extension and change of rent repayment plan, so as to alleviate the financial pressure of enterprises. The Company has increased cooperation with domestic shipping companies, fully supported the shipping companies to resume work and resume production, and received 19 new ships worth US$620 million throughout the year; Signed eight new shipbuilding contracts with a project value of US$400 million, fulfilling the social responsibility of state-owned financial enterprises.

Expands asset trading channels and strengthens internal management and risk control
CDB Leasing actively tracked the trend changes, strengthened the financing rhythm and time limit scheduling, and the comprehensive cost of RMB and USD dropped significantly year-over-year, thus continuing to lead the industry. The Company successfully issued tier-2 capital bonds of US$700 million, creating a precedent for leasing companies.

Meanwhile, the Company put in place robust operating requirements in terms of internal management, strengthened coordinated and centralized resources, and explored the construction of a digital leasing company. The Company also continued to improve the overall risk management system, strengthened risk investigation and control of key industries, and intensified efforts to resolve risks and non-performing projects.

Looking forward, CDB Leasing stated: "in 2021, the Company will pay close attention to relevant policy trends and development opportunities after the pandemic, and combine its first-mover advantages in aviation, shipping, inclusive finance, infrastructure and other professional segments to achieve its business operation objectives while serving the country's major strategic objectives. The Company will further improve its research and analysis system, enhance its situational awareness of market competition and innovate its business development model, continuously improve its professional development capability, insist on the 'customer-centered' concept, optimize the process system, and further improve service efficiency; strengthen the information platform construction and digital empowerment leasing business, comprehensively improve the Company's business response efficiency, fully tap the value of big data, and accelerate the digital development, so as to achieve a good start in the 14th Five-Year Plan."

About China Development Bank Financial Leasing Co., Ltd
China Development Bank Financial Leasing Co., Ltd. (stock code: 1606.HK; "CDB Leasing"), a national non-banking financial institution regulated by CBIRC, is the first listed financial leasing company in mainland China and the sole leasing business platform and listing platform of China Development Bank. Its leasing assets and business partners reach throughout over 40 countries and regions around the globe. The Company enjoys relatively high international credit ratings, namely "A1" by Moody's, "A" by Standard & Poor's and "A+" by Fitch. Founded in 1984, CDB Leasing is a pioneer and a leader in the leasing industry in the PRC, and is in the first batch of leasing companies established in the PRC. Adhering to the mission of "leading China's leasing industry, serving the real economy", CDB Leasing is dedicated to providing comprehensive leasing services to high-quality customers in fields including aviation, infrastructure, shipping, inclusive finance, new energy and high-end equipment manufacturing.

The press release is distributed by Ever Bloom (HK) Communications Consultants Group Limited on behalf of China Development Bank Financial Leasing Co., Ltd.

Ever Bloom (HK) Communications Consultants Group Limited
Miss Diva Ding / Orianna Ou / Wu Xiaoyue
Tel: (852) 3468 8434 / (852) 3468 8944
Fax: (852) 2111 1103
Email: diva.ding@everbloom.com.cn / orianna.ou@everbloom.com.cn / xiaoyue.wu@everbloom.com.cn




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