On April 24, Jianyuan Trust disclosed its 2023 annual report and 2024 first quarter report.
According to the annual report, in 2023, Jianyuan Trust achieved total operating income of 334 million yuan, an increase of 71.52% over the previous year; net profit to mother was 42 million yuan, turning a year-on-year loss into a profit.
In 2022, Jianyuan Trust's net profit attributable to mother was -1,043 billion yuan. According to statistics, Jianyuan Trust had been in a state of loss for five consecutive years, with a cumulative net profit loss of 14.7 billion yuan from 2018 to 2022.
On the same day, Jianyuan Trust issued an announcement. According to estimates, the company will need to accrue financial asset credit impairment losses and fair value change losses of $97 million in 2023, including loan impairment reserves of $0.24 billion, debt investment impairment reserves to return $92 million, fair value change losses for transactional financial assets (non-securities, etc.), and impairment reserves of $0.12 billion for receivables and other receivables.
In terms of the impact of impairment preparations on the company's financial situation and operating results, Jianyuan Trust stated that after this calculation, it can more fairly reflect the company's asset status and operating results, and there is no harm to the interests of the company or all shareholders.
Jianyuan Trust also stated in its annual report that the net cash flow from the company's operating activities during the reporting period was -2,031 billion yuan, a decrease of 2,139 billion yuan, or a decrease of 21.39 billion yuan over the same period last year due to reasons such as repayment of credit insurance funds, liabilities related to the Bank of China, and settlement of payables.
Jianyuan Trust's main business includes inherent business and trust business. In terms of trust business, Jianyuan Trust achieved trust business revenue of 305 million yuan in 2023, an increase of 59.5 million yuan over the previous year. The company continued to have 195 trust projects, with a trust management scale of 141,979 billion yuan; in 2023, 22 trust projects were liquidated, with a liquidated trust scale of 3,713 billion yuan. 7 new trust projects were set up, and an additional trust scale of 8.936 billion yuan was added.
In terms of inherent business, in 2023, Jianyuan Trust's inherent business achieved interest income of 29.07 million yuan, an increase of 722.6% over the previous year; investment income of 99.54 million yuan. In particular, in 2023, Jianyuan Trust's interest expenses were 12.51 million yuan, a year-on-year decrease of 98.01%. In response, Jianyuan Trust stated in its annual report that the main reason was that the settlement plan was reached. The company will no longer charge relevant interest from February 2023, and related interest expenses have dropped sharply compared to the same period.
Specifically, Jianyuan Trust explained in detail in the earnings pre-profit announcement issued in January of this year. In January 2023, Jianyuan Trust's application for a non-public offering of shares was approved by the China Securities Regulatory Commission's Issuance Review Committee. Based on the settlement plan, the company's guarantee promised that the settlement conditions for the relevant lost lawsuit were met; at the same time, the debt settlement failure clause relating to the “Debt Settlement Agreement” between the company and the China Trust Industry Guarantee Fund was not valid, so the company will no longer charge penalties and interest related to these debts from February 2023. Related interest expenses and non-operating expenses fell sharply compared to the same period.
At the same time, the pre-profit announcement also explained other reasons for Jianyuan Trust to turn a loss into a profit in 2023. The company completed a non-public offering in April 2023, adding 4.375 billion shares and raising net capital of 8.972 billion yuan. The company initially completed the allocation of inherent assets, and related income increased over the same period; in 2023, the company actively promoted the trust business and increased its stock asset settlement efforts.
In the first quarter of 2024, Jianyuan Trust achieved operating income of 43.63 million yuan, an increase of 295.8% over the previous year; net profit to mother was 20.65 million yuan, turning a loss into a profit over the previous year.
Regarding the simultaneous sharp increase in revenue in the first quarter of 2024, Jianyuan Trust stated that the main reason was the increase in processing fees and commission income for the current period compared to the same period last year. During the reporting period, Jianyun Trust's handling fees and commission income was RMB 40.1 million, an increase of 265.28% over the previous year.
According to data, Jianyuan Trust is the only trust company listed on the Shanghai Stock Exchange. Formerly known as Anxin Trust, the restructuring was completed in April 2023, and the name change was completed in May to become a state-owned trust company. As of the end of the first quarter of 2024, Jianyuan Trust had total assets of 22.292 billion yuan and registered capital of 9.844 billion yuan.