This is undoubtedly a painful blow to Kunlun Trust, whose performance is still in the loss stage, and it is also the first million-level fine in the trust industry in 2024.
Text: Daily Financial Report Cheng Yi.
Not long ago, CNPC Capital announced the unaudited financial statements of Kunlun Trust in 2023. The report shows that in 2023, Kunlun Trust will achieve revenue of 21.3 billion yuan, up from 42.9 billion yuan, down 50%; The loss was further amplified, with a net loss of 78.6 billion yuan.
At the same time, according to the official website of the State Administration of Financial Supervision and Administration of the State Administration of Finance, Kunlun Trust was fined 5.4 million yuan by the Ningbo Regulatory Bureau. From the perspective of the reasons for violations of laws and regulations, it mainly involves undertaking risk projects in violation of regulations in various ways, submitting untrue information to regulatory authorities, and providing channels for insurance companies to invest in a single trust in disguise.
According to the "Daily Financial Report", the performance of Kunlun Trust has declined since 2021, and the company will turn from profit to loss in 2022. This is undoubtedly a painful blow to Kunlun Trust, whose performance is still in the loss stage, and it is also the first million-level fine in the trust industry in 2024.
The profit of the trust industry was under pressure, and the loss of Kunlun Trust expanded
Not long ago, 10 trust companies, including Kunlun Trust, Yingda Trust, Jiangsu Trust, etc., announced the unaudited financial statement data for 2023 through the controlling shareholders of listed companies.
Among the 10 trust companies, only four companies, namely Jiangsu Trust, Shaanxi Guotou Trust, Yingda Trust and COFCO Trust, achieved year-on-year growth in revenue and net profit, and the performance of the remaining six trust companies declined to varying degrees. Among them, Jiangsu Trust has a revenue of 300.3 billion yuan, net profit of 254.1 billion yuan, ranking first among the 10 trust companies.
It is worth noting that the performance of Kunlun Trust has declined the most. In 2023, Kunlun Trust will achieve revenue of 21.3 billion yuan, down 50% year-on-year; Achieved a net profit of -78.6 billion yuan, down 95% year-on-year.
Specifically, credit impairment losses and fair value change gains and losses are the main factors that aggravate the performance loss of Kunlun Trust. In 2023, Kunlun Trust's credit impairment loss reached 93.1 billion yuan, a year-on-year increase of 3854%；Fair value change gain or loss was -2$8.1 billion.
In addition, with the decline in the scale of financing business, the scale of existing trusts has declined, and the trust return rate of new business has been low, resulting in a sharp decline in fee and commission income. In 2023, Kunlun Trust will achieve fee and commission income of 37.1 billion yuan, a year-on-year decrease of 274%。
In addition, the overall performance of the A** market in 2023 will be weak, the stock index will show a downward trend, and the investment income of many trust companies will fall sharply. Kunlun Trust is no exception, and in 2023, the company will only achieve investment income of 14.4 billion yuan, a year-on-year decrease of 565%。
Kunlun Trust turned from profit to loss, and risk assets were greatly impaired
Kunlun Trust, formerly known as Ningbo Trust and Investment Company of Industrial and Commercial Bank of China, was restructured into a limited liability company in 1994 and Jingang Trust as a whole in 1997. In 2009, Jingang Trust received a capital increase from CNPC Assets and changed its name to Kunlun Trust. In 2017, Kunlun Trust increased its capital and shares again, with a registered capital of 10.2 billion yuan; In February of the same year, Kunlun Trust was also listed on the A-share market with other financial companies of PetroChina.
Benefiting from the capital increase, Kunlun Trust achieved revenue of 157.8 billion yuan, a year-on-year increase of 3249%；Net profit 82.5 billion yuan, a year-on-year increase of 1286%。Since then, the performance of Kunlun Trust has maintained an overall growth trend. In 2020, Kunlun Trust achieved revenue of 20600 million yuan, net profit 126.3 billion yuan, the highest level in its history.
According to the analysis of the "Daily Financial Report", the surge in investment income is the main reason for the surge in Kunlun Trust's performance. In 2020, the investment income of Kunlun Trust reached 117.2 billion yuan, a year-on-year increase of 1531%, which exceeded its current fee and commission income (9.).7.6 billion yuan).
But the good times did not last long, and the performance of Kunlun Trust began to decline from 2021. In 2021, Kunlun Trust achieved revenue of 142.2 billion yuan, down 30 percent year-on-year97%；Net profit 34.3 billion yuan, down 7284%。In 2022, Kunlun Trust's revenue will fall to 4$2.9 billion; The company's net profit turned from profit to loss, with a net loss of 40.4 billion yuan.
Talking about losses, Wang Zhengrong, chairman of Kunlun Trust, explained that it was mainly due to the need for impairment of historical risk assets. It is reported that in 2022, Kunlun Trust will dispose of 27 risk-related projects and recover 20 funds$3.3 billion; In 2023, there will be 11 risk mitigation projects with a scale of 524.9 billion yuan. Among them, 5 projects were resolved in the year of the accident; 6 projects are delisted projects, with an amount of 467.7 billion yuan, and the cumulative amount of risk projects in 2023 will be 109.6 billion yuan, involving 25 projects.
Kunlun Trust accelerated its transformation and received a million-level fine at the beginning of the year
In fact, in the context of the transformation of the trust industry, the operating performance of many trust companies is under pressure, and there are not a few companies that have suffered losses. Like Wanxiang Trust will lose 7 in 20234.7 billion yuan, Industrial Trust lost 68.2 billion yuan, China Construction Investment Trust loss of 38.6 billion yuan.
In recent years, under the full implementation of the new regulations on asset management and the strict supervision of "two pressures and one reduction", trust companies are exploring their own transformation direction and implementation path. It is understood that while Kunlun Trust is steadily promoting the business of standard trust and charitable trust, it is also closely focusing on the energy industry chain and ecosystem of PetroChina to start a new journey of energy trust.
However, the transformation is not achieved overnight, how to get through the painful period of transformation, and resolve the problem of risk assets caused by the extensive development of the industry before, is the top priority of Kunlun Trust.
However, in the case that the company's transformation problem has not been effectively resolved, Kunlun Trust is facing a huge fine of more than one million yuan. Not long ago, Kunlun Trust was fined 5.4 million yuan for involving 8 violations of laws and regulations. The facts of its violations of laws and regulations mainly include:
The first is to undertake risky projects in violation of regulations in a variety of ways; the second is to report untrue information to the regulatory authorities; third, due diligence management is not in place; Fourth, the suitability management of investors is not in place; Fifth, failing to carry out equity investment business in accordance with regulations; Sixth, corporate governance is not sound; Seventh, the risk classification of inherent business assets is inaccurate; Eighth, it violates regulations to provide a channel for insurance companies to invest in a single trust in disguise.
In December last year, Kunlun Trust was fined 800,000 yuan for the misreporting and omission of standardized regulatory data and inconsistent cross-verification of standardized regulatory data.
Under the guidance of the new classification of trust business, trust regulatory policies will continue to be iteratively upgraded, and the strong regulatory posture will also be normalized. According to incomplete statistics, in 2023, the total fine imposed by the regulatory authorities on trust companies that violate laws and regulations will be as high as more than 30 million yuan. Among them, there were 9 fines with a single fine of more than one million yuan.
In the future, in the face of the transformation of the industry and the tightening of supervision, whether Kunlun Trust can withstand the pressure and reverse the decline in performance, the "Daily Financial Report" will continue to pay attention.