China Cinda (1359.HK), which started by disposing of bad debts from domestic banks, announced its annual results for the year ending December 31, 2025, achieving a net profit of RMB 3.562 billion, a year-on-year increase of 17.32%, with total dividends of RMB 3.156 billion, a payout ratio of 88.6%, and a dividend of RMB 0.2801 per 10 shares. Cinda Securities has become a new engine for profit growth, with annual revenue reaching RMB 6.149 billion, a year-on-year increase of 25.48%, and a pre-tax profit of RMB 2.094 billion, an increase of 36.36%.

However, affected by multiple factors, the group's total revenue slightly declined by 1.18%. Among them, the fair value change income of Cinda's non-performing loan assets fell by 34.95% year-on-year to RMB 5.783 billion, hitting a 10-year low; at the same time, due to the pressure on the credit quality of debt assets, credit impairment losses surged by 50% to RMB 14.15 billion.

In terms of business dynamics, the group focuses on the non-performing asset market and actively expands its scale: acquiring financial non-performing assets with an original value of over RMB 300 billion and handling RMB 40.39 billion of non-performing loans; at the same time, it has acquired and entrusted the disposal of non-performing loan principal and interest from local small and medium-sized banks exceeding RMB 120 billion. The amount of non-performing loans measured at fair value and recognized in profit and loss reached RMB 57.077 billion, a year-on-year increase of 21.18%, the highest in three years.

Nanyang Commercial Bank performed better than expected, with annual revenue slightly declining by 14.38% to RMB 19.886 billion, but pre-tax profit rose against the trend by 5.65% to RMB 3.78 billion. The net interest margin expanded from 1.55% to 1.59%, and the non-performing loan ratio decreased by 0.5 percentage points to 2.32%