China Cinda 2026 Interim Results: Core Operations in the Red, Net Profit Shrinks 65.6%, Cinda Securities Classified as Held-for-Sale

China Cinda Asset Management Co., Ltd. (“China Cinda”) reported 2026 interim results showing net profit attributable to equity holders of RMB 784.40 million, down 65.6% from the prior-year period. The sharp decline reflects a RMB 349.55 million loss from continuing operations—against a RMB 122.60 million loss a year earlier—partly offset by a RMB 1.10 billion profit from discontinued operations following the reclassification of subsidiary Cinda Securities as “held for sale.”

Total income from continuing operations fell 28.0 % to RMB 22.63 billion, driven by a 107.9 % swing in “other income and net gains,” which moved from a RMB 7.94 billion profit to a RMB 0.63 billion loss, and a 22.0 % contraction in interest income to RMB 11.09 billion. Fair-value gains on distressed debt assets rose 73.0 % to RMB 4.20 billion, but were insufficient to offset weaker interest revenue and higher exchange losses.

Total costs and expenses dropped 29.7 % to RMB 25.43 billion as credit-impairment losses more than halved to RMB 3.08 billion, and interest expense decreased 14.1 % to RMB 16.11 billion. Nevertheless, the cost base still exceeded income, producing a pre-tax loss of RMB 0.13 billion from continuing activities.

Segmentally, distressed-asset management posted a RMB 1.01 billion loss attributable to shareholders, while financial services generated RMB 2.57 billion of attributable profit. The Proposed Mergers under which CICC will absorb Cinda Securities triggered the held-for-sale classification; related assets and liabilities of RMB 119.14 billion and RMB 90.03 billion, respectively, were reclassified on the balance sheet.

Group total assets slipped 1.6 % since year-end to RMB 1.69 trillion, while total equity edged 1.3 % lower to RMB 220.71 billion. Core Tier 1, Tier 1 and total capital adequacy ratios stood at 9.04 %, 13.45 % and 13.45 %, comfortably above regulatory minima. Leverage (interest-bearing liabilities to equity) remained at 6.3:1.

The Board confirmed a cash dividend of RMB 0.2801 per 10 A/H shares (RMB 1.07 billion in aggregate) for 2025, paid on 21 August 2026. Separately, China Cinda will redeem all USD 9.50 billion equivalent of its 2021 offshore preference shares on 3 November 2026 and has scheduled a USD 74.80 million dividend payment on the same date, subject to regulatory conditions.

Management acknowledged continued macroeconomic headwinds, yet pledged to deepen its focus on core distressed-asset resolution, support real-economy risk mitigation, and maintain prudent capital and liquidity profiles.