Zhitong Financial APP, Huarong Financial Holdings (00993) issued a notice that the company intends to sell a number of non-performing assets (assets for sale) in the nature of creditor's rights, equity and other income rights (proposed sale).

The company is a Chinese state-controlled financial asset management listed company. In accordance with the provisions of applicable Chinese laws and regulations on the disposal of state-owned assets, the transfer and sale of assets constitutes the sale of state-owned assets, which will be carried out publicly in Guangdong Financial assets Trading Center Co., Ltd. (Guangdong Financial assets Trading Center). According to the rules of Guangdong Financial assets Trading Center, after confirming the identity of the final assignee of the proposed sale, the company will enter into a final agreement with the final assignee for the transfer of assets for sale.

As at the date of this announcement, the identity of the ultimate transferee and the main terms of the final agreement for the transfer of the assets for sale (including, but not limited to, the final consideration amount, payment arrangements and delivery and transfer schedule) have not been determined. As at the date of this announcement, the Company has not entered into any final agreement with any other parties in respect of the proposed disposal.

It is reported that the sale of assets are non-performing assets, including claims, equity and other income rights. Debt assets mainly include bonds, corporate loans and securities; equity assets mainly include shares and other securities; and income rights assets mainly include income, receivables, claims, income and other income rights. As of June 30, 2022, the principal balance and interest balance of the assets sold are approximately RMB 4.0027 billion and RMB 1.0828 billion, respectively.

The announcement said that in order to improve the quality of the company's assets, effectively enhance its anti-risk ability and improve its future profitability, the company intends to sell assets. In addition, the proposed sale will help the Group to reallocate resources to other existing businesses. The Board is of the view that the proposed disposal, if implemented, will provide a solid foundation for the Group to achieve overall stable operation, further enhance competitiveness and promote sustainable development.