On October 16, 2019, China Huarong held a conference to celebrate its 20^th founding anniversary with the theme ‘New Era, New Huarong, New Journey’.Mr. Wang Zhanfeng, Party Secretary and Chairman delivered a keynote speech. Ms. Li Xin, Deputy Party Secretary and President presided the meeting and delivered a speech. Other members of the leadership team, board directors and a number of retired company leaders were present at the meeting. All staff attended the meeting at the headquarters or at sub-venues through video conference.

　　The conference looked back at the four development stages China Huarong went through in 20 years. In response to the Asian financial crisis, the State Council in 1999 established four asset management companies (AMCs) to acquire, manage and dispose non-performing loans (NPLs) of state-owned commercial banks, in order to dissolve financial risks and promote reform of state-owned enterprises (SOEs). The establishment of financial institutions that specialize in the disposal of NPLs symbolized an important step which complemented China’s financial market functions. China Huarong was established on October 19, 1999，upon the approval of the State Council.

　　From 1999 to 2006, China Huarong successfully completed the task of disposing policy-driven assets, which strongly supported the stock reform of the Industrial and Commercial Bank of China (ICBC), effectively relieved debt burden of large numbers of SOEs and dissolved the systematic financial risks.

　　From 2006 to 2010, China Huaorng embarked on a transforming journey of commercialization. During this period of time, China Huarong began to acquire NPLs based on market approach. Grabbing the opportunity of taking over problem financial institutions, China Huarong built new business platforms, actively transformed into a modern financial services enterprise.

　　From 2010 to 2018 the company continued its commercialization development. By introducing strategic investors and being listed on the main board of the Hong Kong Stock Exchange, China Huarong completed its transformation from a policy-driven corporation to a market-oriented financial institution that provides comprehensive financial services with distressed asset management as its core. However, during this period, due to ill-conceived developmental concept, the company experienced difficulties and paid a heavy price for its radical development strategy. After the April 17 event in 2018, all Huarong staff, led by the new company leadership, confronted the challenge actively under the strong leadership of the CPC Central Committee, the State Council and the Party Committee of the China Banking and Insurance Regulatory Commission (CBIRC). By comprehensively strengthen party building and systemically eradicate the adverse impact of Lai Xiaomin, China Huarong made timely re-adjustment of its development strategy, set out new goal and embarked on a new journey towards high-quality development.

　　As a witness of China’s economic and financial reform and development, China Huarong has deeply integrated with national real economy and the financial market. The company has in 20 years developed into an important force to serve the national strategy, diffuse financial risks, implement anti-cyclical financial support and promote economic transformation and upgrading.

　　Assisting Commercial Banks to Dispose NPLs. China Huarong has successively took over RMB 680 billion of NPLs from the ICBC, which created a favourable condition for the stock reform and IPO of the ICBC. In 20 years China Huarong has accumulatively acquired over RMB 2.9 trillion of NPLs, making it a leader in the market.

　　Helping Real Entities to Relieve Debt Burdens. China Huarong took over debt of 505 borrowers out of 580 large SOEs targeted for debt-to-equity swap projects, with total debt worth over RMB 100 billion. By market-oriented rules, the company implemented 23 debt-to-equity projects with total investment over RMB 17.6 billion. It carried out 65 restructuring projects with value of RMB 46.5 billion, which strongly promoted national industrial restructuring and economic transformation and upgrading.  

　　Taking Over Defunct Financial Institutions. Entrusted by the State Council, China Huarong successively took over Chinese New Technology Venture Capital Corporation and Delong group, which prevented systemic and regional financial risks. Under the guidance of national policies, the Delong takeover was an unprecedented trial and practice to diffuse systemic risk caused by large private enterprise in a market-oriented, legal and professional way.

　　Pilot in Business Innovation. China Huarong was the first AMC to make public bidding to international investors and online auction of non-performing assets. It was also the first company to introduce quasi-asset-backed securitization (ABS) by repackaging non-performing assets into a trust pool for investors. It piloted in restructuring business and acquiring non-performing assets from trust institutions. In addition, China Huarong was the first principal AMC underwriter and AMC sponsor when the stock market started running sponsor system.

　　Fulfilling Social Responsibilities. By joint efforts of poverty alleviation in the fields of finance, industry, education and people’s livelihood, China Huarong has accumulatively invested RMB 62 million and RMB 28 million in the designated poverty alleviation fund and local poverty alleviation fund respectively, and assisted the CBIRC in investing RMB 5 million in designated poverty alleviation fund. The company’s subsidiaries have actively participated in people’s livelihood projects, developed green-economy related financial projects, expanded rural service networks, and optimized financial services to small-and-micro enterprises.

　　With faith, persistence, indomitable and upright spirit, the conference calls all staff to work hard, advance career and construct a new Huarong for a brighter future.