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Huarong says 2009 net profit up 103% year-on-year

Updated: 2010-01-28 14:12
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China Huarong Asset Management Corporation,one of China's four state-owned asset management firms, registered a 17.38 percent growth in business revenue and 102.98 percent jump in net profit in 2009 from 2008, the company said on Wednesday.

"The Corporation has fully fulfilled the preset goals and secured record high profit in 2009, the toughest year for the Chinese economy," the company said in a statement, citing Lai Xiaomin, president of Huarong.

The performance stemmed from a 71 percent year-on-year rise in net profit of Huarong's four main subsidiaries, Huarong Financial Leasing Co, Ltd, Rongde Asset Management Company Co, Ltd, Huarong Securities, and Huarong International Trust Co, Ltd, the statement said.

"We will face great challenges in 2010 as we are going to fully implement a profit-oriented performance assessment mechanism and push our subsidiaries and the Corporation as a whole to adopt a market-oriented path in a thorough way," said Lai.

Lai also stressed the importance of risk management which should be the company's top priority.

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Huarong, along with Cinda, Great Wall and Orient asset management firms, was founded by the central government in 1999 to help rid China's banking industry of 1.4 trillion yuan ($205 billion) non-performing loans.

In February 2007, the company announced that it had finished clearing out policy-oriented bad debts and planned to transform itself into a comprehensive financial services group.

At the beginning of 2009, Huarong said its market-oriented business income had reached 1.43 billion yuan for the full year of 2008 and had basically quit its dependence on policy-oriented businesses to make profits.

In the statement, the firm sets targets of a 25.68 percent rise and a 54.15 percent increase for its revenue and profit, respectively, in 2010.