China Huarong Asset Management Company Ltd on Wednesday swung to an annual loss due to the weak performance of its distressed asset management business.
The company, one of four major state-owned distressed debt managers, said total income from the unit fell 38 per cent to 32.11 billion yuan ($4.66 billion) for the year ended Dec. 31.
A combination of factors such as fluctuations in the capital market, the macroeconomic situation and the downturn in the real estate industry impacted the business, the company said.
The Beijing-headquartered firm reported an annual loss attributable of 27.58 billion yuan, compared with a profit of 378.5 million yuan a year earlier.
Total income from continuing operations came in at 37.26 billion yuan for the annual year, down from 68.09 billion yuan last year.
Earlier this month, Huarong and its investment arms were fined for internal governance lapses, risk control failures and severe inaccuracy of accounting information from 2014 to 2019.
($1 = 6.8860 Chinese yuan renminbi)
