October 20, 2021

China’s Huarong posts $24.5 mln first-half profit after annual loss

The logo of China Huarong Asset Management Co is seen at its office in Beijing, China, April 16, 2021. REUTERS/Thomas Peter

BEIJING, Aug 29 (Reuters) – China Huarong Asset Management Co Ltd (2799.HK) posted a 158.3 million yuan ($24.46 million) first-half profit following a deep 2020 loss and outlined plans to shore up its balance sheet in a a Hong Kong exchange filing on Sunday.

In the second half of 2021, Huarong said it would actively “focus on the core business” and plans in the near future to dispose of subsidiaries with non-core business.

Huarong is one of the four state distressed debt managers and counts China’s finance ministry as its biggest shareholder.

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

Sunday’s annual…

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