China Huarong swings to annual loss as core business weakens (updated)

China CITIC Financial Asset Management

29/03/2023 17:05

(Adds details on results, background)
       March 29 (Reuters) - China Huarong Asset Management
Company Ltd  2799.HK  on Wednesday swung to an annual loss due
to the weak performance of its distressed asset management
business.
        The company, one of four major state-owned distressed
debt managers, said total income from the unit fell 38% to 32.11
billion yuan ($4.66 billion) for the year ended Dec. 31.
  
        A combination of factors such as fluctuations in the
capital market, the macroeconomic situation and the downturn in
the real estate industry impacted the business, the company
said.
  
        The Beijing-headquartered firm reported an annual loss
attributable of 27.58 billion yuan, compared with a profit of
378.5 million yuan a year earlier.
    Total income from continuing operations came in at 37.26
billion yuan for the annual year, down from 68.09 billion yuan
last year. 
        Earlier this month, Huarong and its investment arms were
    fined
     for internal governance lapses, risk control failures and
severe inaccuracy of accounting information from 2014 to 2019.
  
            
  
($1 = 6.8860 Chinese yuan renminbi)


 (Reporting by Nausheen Thusoo in Bengaluru; Editing by Rashmi
Aich and Anil D'Silva)
 ((Nausheen.Thusoo@thomsonreuters.com;))