CITIC Financial Asset Management Co., Ltd. (referred to as CITIC FAMC, 02799) released its 2025 annual results report on the Hong Kong Stock Exchange on March 30. The report indicates that for the full year ended December 31, 2025, CITIC FAMC achieved total revenue of RMB 80.476 billion. Excluding the impact of one-off factors, this represented a year-on-year increase of 43%. The company reported a net profit attributable to owners of the parent of RMB 11.086 billion. Excluding the impact of the financial leasing company's deconsolidation, this represented a year-on-year increase of 17%. The average return on equity was 18.7%, an increase of 0.3 percentage points from the previous year, with basic earnings per share of RMB 0.13. CITIC FAMC's key operating indicators exceeded expectations, surpassing its strategic goal of achieving "significant improvement in quality and efficiency within three years."
Longitudinally, CITIC FAMC has been profitable for three consecutive years from 2023 to 2025, reflecting the continuous strengthening of its core competitiveness in its primary non-performing asset business and its steady progress onto a sound development track. Laterally, against the backdrop of a sluggish global economy and generally declining performance among financial asset management companies, CITIC FAMC has grown against the trend. In 2025, its profitability metrics, including profit scale, return on equity, and profit per employee, led the industry, demonstrating its position as a leader in the non-performing asset sector.
Operating performance has surged to high levels, with profitability continuously strengthening. Reviewing its development, CITIC FAMC achieved a net profit attributable to owners of the parent of RMB 1.766 billion in 2023, turning a profit and getting its operations and management on track. In 2024, this figure reached RMB 9.618 billion, representing a leap of several multiples and marking a return to a high-quality development trajectory. In 2025, profits surpassed the RMB 10 billion threshold, achieving three consecutive years of growth in operating performance.
CITIC FAMC has adhered to its core business of non-performing asset management, continuously reinforcing the pillars of revenue and profit growth. In 2025, all three primary business lines—acquisition and disposal, distressed asset revitalization, and equity investment—achieved strong revenue growth. Revenue from distressed asset revitalization business increased by 54.7% year-on-year, disposal gains from acquisition and disposal business grew by 16.6%, and income from equity assets rose by 47.5%. The competitiveness of its core business continues to strengthen, fueling sustained momentum for high-quality development.
In 2025, CITIC FAMC's core business deployment reached a new high. The total new deployment for the core business for the year was RMB 178.6 billion, an 8% year-on-year increase, ranking first in the industry in deployment scale. New deployments across all three primary business lines—acquisition and disposal, distressed asset revitalization, and equity investment—achieved year-on-year growth.
Specifically, the acquisition and disposal business maintained its leading edge. In 2025, CITIC FAMC acquired new non-performing asset claims with a principal balance of RMB 242.1 billion, a 35% year-on-year increase. The distressed asset revitalization business accelerated its transformation and innovation, with both deployment and outstanding balances seeing significant increases. CITIC FAMC deeply promoted the transformation and innovation of its distressed asset revitalization business, successfully implementing a number of innovative projects. In 2025, the company deployed RMB 92.3 billion in new distressed asset revitalization business, a 34% year-on-year increase. The equity investment business focused on core sectors, with simultaneous optimization in asset scale, structure, and returns. CITIC FAMC's equity investment business saw steady growth in asset scale, significant optimization of asset structure, and a notable improvement in investment returns.
Market recognition is continuously improving, and the value anchor is steadily rising. CITIC FAMC's fundamental operating conditions continue to improve, leading to increasing recognition from the capital markets. In 2025, it was successively included in major global market indices such as the Hang Seng Composite Index, the Southbound Stock Connect, and the MSCI China Index. The MSCI China Index serves as a bellwether for global investors allocating to Chinese assets. CITIC FAMC's inclusion signifies its official entry into the pool of core targets for global capital allocation to China, becoming an important benchmark for international passive funds investing in emerging markets.
The three major international rating agencies—Moody's, Fitch, and S&P—unanimously recognized the company's reform and development achievements. They either upgraded or maintained their "stable" outlooks on the company's ratings, further solidifying its asset credit foundation, lowering financing costs, and providing strong support for asset scale expansion and value enhancement. On June 10, Fitch affirmed CITIC FAMC's 'BBB' rating with a 'stable' outlook. On June 19, Moody's upgraded CITIC FAMC's rating outlook to 'stable'. On August 26, S&P affirmed CITIC FAMC's outlook as 'stable'.
Bolstered by solid operational fundamentals and outstanding growth potential, CITIC FAMC's investment value is undergoing a comprehensive reassessment. Market expectations continue to improve, investor confidence is strengthening, and the stock price has seen significant gains for two consecutive years. Following a substantial rise of 62.5% in 2024, the stock increased again by 27.69% in 2025. Its market capitalization once surpassed the HKD 100 billion mark, representing a peak increase of 544% from its historical low. Its price-to-book ratio ranks among the top of Chinese financial institutions listed in Hong Kong, indicating a steadily rising value anchor and the continuous release of long-term growth momentum.
Multiple development advantages are converging, and growth potential continues to become more apparent. Currently, driven by a trifecta of policy support, market expansion, and model innovation, AMCs are transitioning from traditional "bad banks" to comprehensive financial asset management and risk resolution specialists. The next 3-5 years represent a critical strategic window for AMCs to focus on their core business, strengthen their capabilities, and expand their boundaries.
A research report from CICC suggests that, drawing on the experience of overseas distressed asset management institutions, the core capabilities required for the medium-to-long-term transformation and upgrading of AMCs include the following three aspects: (1) Upgrading non-performing asset management capabilities is paramount. This involves building teams of industry and financial experts to achieve value discovery, value repair, value enhancement, project exit, and risk prevention and control for non-performing assets. This requires a sound internal organizational structure and incentive design, as well as supportive external policies or institutional mechanisms. (2) Synergizing with external resources can achieve twice the result with half the effort, with particular emphasis on close collaboration with entities within the group, such as investment banks, commercial banks, and industrial operating companies. (3) A transition from "heavy" to "light" business models is the long-term direction. Relying on differentiated active management capabilities in alternative assets and connecting both ends of assets and capital through customized product creation can break through the limitations of one's own balance sheet size and meet the long-term allocation needs of patient capital, such as insurance funds, thereby achieving high-quality and sustainable development.
As a leading domestic financial asset management company, CITIC FAMC possesses outstanding core competitiveness in its primary business, maintaining a leading position in non-performing asset management. In recent years, leveraging the unique advantage of CITIC Group's integrated industrial and financial operations, it has accumulated and released significant synergistic potential within the group. Simultaneously, CITIC FAMC has seized opportunities in equity investment, optimized its long-term asset allocation, and achieved steady appreciation of asset value.
Based on the above analysis, CITIC FAMC possesses multiple core advantages and has entered a long-term, sound development channel. The momentum for valuation repair continues to accumulate, further highlighting its investment value and growth potential.
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