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China Huarong Holds 2021 Work Conference
On February 4, China Huarong held its 2021 Work Conference & Discipline Inspection Conference in Beijing. Mr. Wang Zhanfeng, Secretary of the CPC Huarong Committee and Chairman, delivered the keynote speech. Mr. Wang Wenjie, Member of the CPC China Huarong Committee, Executive Director and Vice President (currently performs the duties of the President), made the report on business operation. Mr. Pang Xuefeng, Member of the CPC China Huarong Committee and Secretary of the Discipline Inspection Commission, made the report on discipline inspection work. Representatives from the China Banking and Insurance Regulatory Commission (CBIRC), Ministry of Finance (MOF) and National Audit Office of China (CNAO), as well as other members of the company leadership, board directors and supervisors were also present. Directors of the HQ departments and local branches attended the conference on site or through video conference at sub-venues.
According to the conference, facing the unforeseeable impact of the covid-19 pandemic in 2020, as well as tough and complicated internal and external challenges, the company has managed to make remarkable achievements in building a New Huarong, under the strong leadership of the CPC Central Committee, the State Council and the CPC CBIRC Committee, together with the steadfast support of the MOF, the People’s Bank of China, CNAO and CBIRC Discipline Inspection and Supervision Group.
Over the past year, the company has, first of all, comprehensively and consistently strengthened party leadership and construction, achieving notable results in eradicating the adverse impact of Lai Xiaomin. Second, it has duly implemented the Central government’s major strategic decisions to ensure ‘six priorities’ and ‘stability in six areas’, fully supported enterprises to resume work and production and successfully accomplished its poverty alleviation tasks. Third, it has made solid progress in risk control and downsizing, strengthened efforts to reduce risk exposure. Fourth, it has continued to consolidate internal management, improve corporate management of branches and subsidiaries and establish a synergy mechanism. Last but not the least, with the optimization of team structure and motivation and restrictive mechanism, the staff working capabilities have been consistently improved.
In 2020, China Huarong has further returned to its core business, playing a key role in resolving financial risks as a state-owned asset management company. The company acquired 40% of non-performing portfolios in the distressed asset market, with the original value of the acquired assets reaching 180 billion yuan, maintaining its leading position in the market. Through a variety of new approaches such as substantial restructuring, online promotion and asset-backed securitization, the company has accelerated NPL disposal process. Meanwhile, by creating innovative business models such as bailouts of large entity enterprises, reconstruction of old city and risk resolution of defaulted bonds, the company’s acquisition-and-restructuring business has kept growing, giving full play to its counter-cyclical financial rescue function. It also effectively served the national strategy by optimizing equity business structure and carrying out 35 market-oriented debt-to-equity swap (DES) projects.
According to the conference, after three years of hard work, and against all odds, the company’s asset size and net profit have remain stable. Thanks to the strong leadership of the regulatory authority, the company’s correct strategic direction and all staff’s joint efforts, a series of positive changes have been made in terms of structural transformation and development trend. First, the contribution of the core business has continued to improve, providing strong support for the company’s performance. Second, risk exposure has been sharply reduced, and profitability from outstanding assets effectively enhanced. Third, the structure of its asset, business and personnel has been consistently optimized, bolstering the strong momentum of development. All staff must recognize not only these positive changes, but also the challenges and opportunities for the company’s high-quality development, and reinforce confidence and determination to tide over difficulties and achieve the set goals.
The conference stressed that 2021 is a crucial year of transformation for the company. It will, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the policies and decisions made by the CPC Central Committee, the State Council and the CBIRC. By adhering to the general principle of seeking progress while maintaining sound and stable performance, it will strive to make in-depth and steadfast efforts in the following five aspects.
First, strengthen Party leadership and party building, and thoroughly eradicate the adverse impact of Lai Xiaomin. Second, deepen the transformation of the distressed asset business, make the core business more competitive, innovative and resistant to risks. Third, enhance comprehensive risk management, accelerate the disposal of existing risks and extract profit from risk assets. Fourth, improve corporate management control, optimize the annual business plan and performance evaluation systems, enhance corporation coordination mechanism, and step up the construction of IT system. Fifth, optimize human resources management with a focus on professionalism and implementation, continue to cultivate and promote staff members who are politically reliable and professionally competent.
2021 is the final year of the Three-Year Strategic Plan (2019-2021) for building a New Huarong. With unified thought and affirmed confidence, all staff will confront internal and external challenges and strive to achieve the goals and tasks set out by the conference, and the company shall shoulder its historical responsibility through self-development to contribute to the national financial stability.
