CHINA CINDA (01359) has issued a profit warning, announcing that the group expects its net profit for the six months ending June 30, 2026, to decline by approximately 20% to 25% compared to the same period in 2025. Net profit attributable to shareholders of the company for the same period is expected to fall by about 60% to 70% year-on-year.
The company attributes these changes primarily to two factors: (1) an increase in income tax expenses due to shifts in deferred tax expenses and a rise in current taxable income, which turned from a reversal in the first half of 2025 to an accrual in the first half of 2026, leading to a decline in net profit; and (2) a significant reduction in losses from Cinda Real Estate in the first half of 2026 compared to the same period last year, which sharply decreased losses attributable to non-controlling interests, thereby reducing net profit attributable to shareholders.
During the first half of 2026, the company focused on its core businesses, effectively enhancing its efficiency in serving the real economy across key areas such as non-performing asset disposal, distressed institution relief, and corporate restructuring. It continued to build differentiated competitive advantages, improve resource allocation efficiency, accelerate asset disposal and cash recovery, strengthen comprehensive risk management, and maintain adequate capital levels and liquidity safety margins. While keeping overall operations stable, it reasonably controlled operational costs and achieved steady growth in pre-tax profit.
The company will resolutely implement central government decisions and plans, focusing on the five major financial strategies. Leveraging its functions in financial rescue and counter-cyclical adjustment, it will fully play its role in preventing and mitigating risks and serving the real economy, steadfastly pursuing a high-quality development path for financial asset management companies with Chinese characteristics.
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