Our financial services focus on the consolidation of industry and finance with effective risk control. The sector has continued to build its service models, expand the market, and optimize the information platform to build a competitive finance service brand. The financial services have kept a quality portfolio with high profitability over the years.
Adjusting to the challenging business environment, CNOOC Finance Co., Ltd. extended its financial service functions, endeavored to provide accounting, foreign exchange and credit services for CNOOC members and maintained a record of zero non-performing assets. Along with the development of the Group’s industrial chains, CNOOC Finance Co., Ltd. expanded services in coastal regions where the Group conducts main businesses, and its services are provided to 92% of CNOOC affiliates. It enlarged the scope of foreign exchange transaction to USD leasing and loan, domestic transfer, cross-border foreign-exchange collection, reducing foreign exchange fund cost and comprehensive financial cost in CNOOC’s “going-out”. It also provided reliable low-cost funds for production and operation and replaced the external bank loans of some affiliates to cut their financing cost. Meanwhile, it seized investment opportunities in market, made detailed capital arrangement and kept profitable operation. In recent years, it has provided more financial services to CNOOC and achieved bettering operation performance. In 2015, CNOOC Finance Co., Ltd. completed a settlement of RMB 2.84 trillion, with a year-on-year increase of 2.93%; 392 deals of settlement and sale of foreign exchanges were conducted, which amounted to USD 3.17 billion. It provided RMB 159.3 billion of proprietary credit loans and RMB 29.3 billion of entrust loans; by the end of 2015, the proprietary credit loan balance reached RMB 25.0 billion and the average daily proprietary credit loan balance reached RMB 21.4 billion. By the end of 2015, the total assets of the company reached RMB 117.9 billion, with a year-on-year increase of 9.1%, and its proprietary assets reached RMB 79.5 billion, with a year-on-year increase of 21%. The profit after provision amounted to RMB 1.55 billion with a year-on-year increase of 30.2%, creating a record in its history.
As of the end of 2015, Zhonghai Trust Co., Ltd. managed trust asset balance of RMB 411.693 billion, with a year-on-year increase by 31.0%. Its operating revenue, total profit and net profit reached RMB 1.590 billion, 1.304 billion and 1.099 billion, with a year-on-year increase of 12.9%, 11.4% and 13.0% respectively. Zhonghai Trust Co., Ltd. constantly conducted risk identification, management and supervision, adapted business systems and standards to supervisory policy changes, and carried out timely and effective in-action and post-action risk control in trust projects. The measures ensured that it fulfilled its role as a trustee, guaranteeing investor interests and market stability. No the trust project was not honored as scheduled throughout the year, and the company kept zero record of new non-performing assets for 12 consecutive years. On the premise of controllable risks, Zhonghai Trust Co., Ltd. carried out business innovation and consolidated its advantages in asset securitization businesses, witnessing an annual scale of RMB 22.934 billion in securitization of credit assets. It also set up the “Zhonghai - Hong Kong Market Investment No.1 Series” QDII product and the first RQDII product. The investment choices included the IPO, secondary market shares, bonds and structured notes in London and Hong Kong capital markets. At the end of 2015, Zhonghai Trust Co., Ltd. obtained the qualification in stock index futures business, making breakthroughs in capital market businesses. Using the hedging function of stock index futures, Zhonghai Trust Co., Ltd. developed low-risk trust products that yield stable returns for clients.
As a vehicle of risk control, CNOOC Insurance Ltd. carried out CNOOC’s policy of central insurance, reduced insurance costs for CNOOC, and facilitated the development of industrial segments. It actively expanded its insurance business, so as to provide CNOOC with insurance and support for overseas projects located in politically sensitive areas. CNOOC Insurance effectively saved insurance cost for policyholders, sped up amortized compensation expenses, assisted policyholders resume production, provided financing assistance for sectors of CNOOC, and realized all-win. In 2015, its gross premium revenue and total profit reached a historically high level, providing vigorous support to the development of core businesses.
CNOOC Investment Co., Ltd. is authorized by CNOOC to execute financial investment and strategic investment. Through strengthening the management on strategy and equity value, it continued to run in good conditions in aspects of assets quality, equity operation and governance structure. In the beginning of 2015, it held 16 equities and managed 3 CNOOC private equity investments. Corresponsive to equity types and industry trends, it adopted different operation strategies to keep holding, reduce holding, or drop out. As of the end of 2015, it saw a total profit of RMB 3.59 billion through equity dividend, reducing holding of stocks and equity transfer.
CNOOC International Lease Finance Company adhered to the operation policy of relying on CNOOC, providing service for quality clients, operating legal and compliance business, maintaining sustainable and stable development. It promoted innovation in business and strengthened risk control to create a new favorable situation, the measures including smooth fund operation, risk control and upgraded legal management. Facing severe conditions in market, it actively transformed the business model and expanded internal and external markets; it also established a branch in Hong Kong to expand overseas market. In 2015, CNOOC International Lease Finance Company completed 26 leasing projects. The contract price amounted to RMB 38.9 billion, RMB 29.0 billion from internal projects and RMB 9.9 billion from external projects. It achieved operation revenue of RMB 699 million, total profit of RMB 197 million with a year-on-year increase of 40.71%, and realized zero non-performing assets.