CDB Leasing recently won the “Most Competitive Financial Leasing Company of the Year” in the “Golden Dragon Award of Chinese Financial Institutions 2022” sponsored by the Financial News. The Company is recognized by its continuous effort in adjusting itself to national strategies and supporting the development of the real economy. Via a series of effective initiatives, the Company has contributed to the development of regional economy, green finance, small and micro enterprises and rural areas. The annual “Golden Dragon Award” is launched and organized by the Financial News, an authoritative financial news media supervised by the People’s Bank of China. Benefiting from the credibility and expertise of the Financial News, the event manages to convene experts and think tanks to evaluate the annual performance of major Chinese financial institutes. Since its launch in 2008, the event has been recognized by the industry as a prestigious, impartial, comprehensive and the most influential brand value ranking event in China’s financial sector.
Leading China’s leasing industry to support the development of the real economy
Always implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, CDB Leasing embraces a complete, accurate and comprehensive understanding of the rich connotation and core essence of the 20th National Congress of the CPC. Adapting itself to the new development concept, the Company is committed to firmly supporting the development of the real economy, and actively fulfilling its responsibilities as a state-owned financial enterprise.
Throughout 2022, CDB Leasing has actively promoted business innovation and transformation. It has worked extensively to improve the quality and efficiency of internal management, enhance internal systems for effective integration of risk prevention and controls, and by doing so, serve its business development. The Company persists in focusing on four core business segments, namely aircraft leasing, infrastructure leasing, ship leasing and inclusive finance. It also increased leasing financing in strategic emerging industries, green finance, inclusive finance, and other fields. By aligning itself closely with national strategies and the demands of the real economy, the Company has achieved steady performance in terms of operating results and other financial indicators. In 2022, CDB Leasing became one of the world’s Top 10 aircraft leasing companies weighted by net book value of aircraft fleet. Giving full play to its international customer base and market resources in the aviation industry, the Company has been fully supporting China’s domestically-built large passenger jets to compete in the international market. It has signed 50 purchase letters of intent with the Commercial Aircraft Corporation of China (COMAC) for C919 aircraft.
In support of the nation’s development strategies in key regional areas, the Company has granted leasing financing in seven national key regional areas including Yangtze River Economic Belt, Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area. It has strengthened financing support to peak carbon emissions and carbon neutrality projects. In 2022, financing of this key field accounts for more than 80% of total leasing financing in green finance. In terms of ship leasing business, the Company has been actively exploring new business models focusing on key ship types - those with high market entry threshold and high added values - that cater to the demands of the Company’s key clients. It also endeavors to support China’s shipbuilding industry. In terms of inclusive finance, the Company has developed diversified inclusive financial leasing products to support the real economy and SMEs. In response to the central government’s call to safeguard logistic flows, the Company has supported financing leasing of more than 4,200 cargo vehicles. In terms of supporting the development of agriculture, farmers’ livelihood and rural areas, the Company has stepped up measures to collaborate with agricultural equipment manufacturers to provide relevant equipment leasing services and boost rural revitalization. As to the application of Fin-tech, the Company continues to empower business with financial technologies in order to benefit the people’s livelihood and boost consumption. A good example would be passenger car leasing services where consumers have benefited from the Company’s innovative C-end leasing products.
CDB Leasing maintains a steady business growth and keeps its industry leadership position
As at the end of 2022, the Company has delivered a steady growth, recording a total assets of RMB354,717 million (approx. USD48,598 million). Its operating income amounted to RMB25,053 million (approx. USD3,432 million), representing a year-on-year increase of 7.5%. The Company’s net profit reached RMB3,351 million (approx. USD459 million), representing a year-on-year decrease of 14.6%, which is mainly attributable to the impact of the Russian-Ukraine conflict. In accordance with international accounting standards and taking into consideration the practice of other leasing companies in the international market, the Company took the most prudent approach in treating the aircraft stranded in Russia as fully impaired assets. In contrast to other international market players who suffered sharp net profit decreases due to significant increase in impairment losses of aircraft assets, CDB Leasing has effectively resisted the cyclical fluctuations in the industry by virtue of its reasonably balanced asset allocation covering four key areas including aircraft, ships, infrastructure and inclusive finance. In 2022, the Company reported return on assets (ROA) ratio and return on equity (ROE) ratio of 0.96% and 10.41% respectively, and a non-performing asset (NPA) ratio of 0.63%, maintaining its industry leading position. The eye-catching performance marks another successful year of the Company and reflects its balanced development approach in terms of quality, efficiency and scale.