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

China Huarong Asset Management Co Ltd 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 results statement, which confirmed the deep loss, was delayed by nearly five months because of restructuring uncertainties.

As part of a official restructuring plan, Huarong earlier this month said a CITIC Group Corp-led state consortium would take stakes in the company.