**Summary** "In the first half of the year, our acquisition and disposal business achieved a year-on-year revenue growth of 180.8%; our distressed asset restructuring business realized revenue growth of 65.5% year-on-year. These figures demonstrate our sustainable development capabilities and resilience," stated Li Zimin, President of CITIC FAMC.

Recently, CITIC FAMC (02799.HK) released its 2025 interim results report, showing total revenue of 40.221 billion yuan in the first half, up 21.1% year-on-year; net profit attributable to shareholders reached 6.168 billion yuan, up 15.7% year-on-year.

Excluding the impact of the financial leasing company's deconsolidation, CITIC FAMC's net profit for the 2025 interim period increased 27.5% compared to the 2024 interim period; annualized average return on equity was 21.1%, up 2.7 percentage points from 2024; annualized average return on assets was 1.1%, up 0.35 percentage points from 2024.

Additionally, by the end of June 2025, CITIC FAMC's stock price had surged 96.92% from the beginning of the year, outperforming the Hang Seng Financial Index by 71.96 percentage points during the same period.

"We must abandon the past simple asset trading concepts of the distressed asset industry and establish proactive asset discovery and allocation strategies. For assets prone to depreciation, we accelerate disposal; for quality assets, we maintain them across cycles to truly maximize asset preservation and value enhancement," said Liu Zhengjun, Chairman of CITIC FAMC, on September 1st.

**Profits Exceed 6.1 Billion Yuan**

Data shows that as of June 30, 2025, CITIC FAMC achieved total revenue of 40.221 billion yuan, up 21.1% year-on-year; net profit attributable to shareholders reached 6.168 billion yuan, up 15.7% year-on-year; total assets amounted to 1,010.933 billion yuan, an increase of 26.605 billion yuan from year-end.

CITIC FAMC's annualized average return on equity for the 2025 interim period was 21.1%, up 2.7 percentage points from 2024; annualized average return on assets was 1.1%, up 0.35 percentage points from 2024.

As the company's core business, CITIC FAMC's distressed asset operations added 125.2 billion yuan in original value of newly acquired distressed asset claims in the first half.

Specifically, CITIC FAMC maintained its leading market share in acquisition and disposal of distressed asset claims, achieving revenue of 1.691 billion yuan in the first half of 2025, a substantial year-on-year increase of 180.8%; the balance of acquisition and disposal distressed asset claims was approximately 190.633 billion yuan, with 12.941 billion yuan worth of distressed asset packages disposed of.

The second growth curve effect of CITIC FAMC's distressed asset restructuring business began to emerge: revenue reached 4.227 billion yuan in the first half of 2025, up 65.5% year-on-year; new investments totaled 38.925 billion yuan, up 43.6% year-on-year; the balance of distressed asset restructuring business was 151.258 billion yuan, up 19.9% from year-end.

In terms of asset allocation and business structure, 74.1% of CITIC FAMC's newly acquired asset packages in acquisition and disposal business were concentrated in key regions such as the Bohai Rim, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area; distressed asset restructuring business was mainly concentrated in key regions such as the Bohai Rim and Yangtze River Delta, with asset balance accounting for 65.7%, up 0.8 percentage points from year-end.

**Stock Price Increases 97% in Six Months**

Data shows that since joining CITIC Group in 2022, CITIC FAMC's stock price has entered an upward trajectory, with the highest cumulative gain reaching 544% over more than three years. Its price-to-earnings ratio and price-to-book ratio have also risen to the forefront, with total market capitalization once exceeding 100 billion Hong Kong dollars. Specifically, by the end of June 2025, CITIC FAMC's stock price had surged 96.92% from the beginning of the year.

Li Zimin, President of CITIC FAMC, attributed this to a combination of external and internal factors. Externally, it reflects the market's revaluation of Chinese assets and reshaping of the distressed asset industry and its value under a series of favorable national policies. Internally, it represents the enhancement of capabilities and discovery of intrinsic value: improved operational quality and efficiency, such as achieving profitability for seven consecutive quarters since Q4 2023.

"CITIC FAMC's acquisition and disposal business has achieved revenue growth of 180.8% year-on-year in the first half; distressed asset restructuring business realized revenue growth of 65.5%. These figures demonstrate our sustainable development capabilities and resilience," Li said.

In Li's view, high-quality development requires high-quality risk prevention and mitigation. For existing assets, CITIC FAMC strengthened efforts to dispose of long-aged packages, accelerated disposal of existing risky projects, and increased cash recovery from collateral and write-off assets to extract benefits from existing inventory. Simultaneously, it strictly controlled new risks, continuously improved risk management capabilities, effectively enhanced post-investment refined management levels, with overall quality continuously optimizing, provision coverage ratios continuing to rise, and a solid foundation.

**"1-3-5" Strategy Advancing to the Third Phase**

Three years ago, CITIC FAMC formulated its "1-3-5" strategy: "get on track within one year, achieve significant quality and efficiency improvements within three years, and become an industry benchmark within five years."

"The goal of getting on track within one year has been achieved, and the goal of significant quality and efficiency improvements within three years is nearing completion. We are currently working hard to build an industry benchmark and advance toward becoming one," Liu Zhengjun stated.

Liu further explained that in terms of operational performance, CITIC FAMC is formulating its "15th Five-Year Plan": the company's operational performance will grow steadily, main business asset scale will rank among the top national financial asset management companies, capital returns will maintain high levels, and various regulatory indicators will be further enhanced while meeting regulatory requirements.

Regarding core business capabilities, financial asset management companies have unique functional positioning, primarily serving as counter-cyclical adjustments and financial rescue functions. "This positioning determines that financial asset management companies have distinctly different operational logic from other financial institutions. We must develop a comprehensive set of industry-leading cognition, concepts, and approaches to truly cultivate core competitiveness in the distressed asset main business," Liu stated.

In compliance and risk control, the company firmly establishes the concept that managing risks well creates benefits, building a comprehensive risk management system covering institutions, industries, customers, and processes, and firmly establishing the concept that compliant operations are everyone's responsibility.

In reform and innovation, it needs to develop a set of systems, mechanisms, and innovation models suitable for financial asset management company operations and management, maintaining first-mover advantages in reform and innovation; while building standardized business control systems.

In talent development, it cultivates genuine business experts for financial asset management companies who are familiar with investment, finance, taxation, accounting, legal, and valuation professional knowledge, attracting compound and specialized talents.