On February 3, 2021, Ping An of China announced its 2020 annual results announcement: as of December 31, 2020, the operating profit attributable to the shareholders of the parent company was 139.47 billion yuan, an increase of 4.9% year-on-year; the cash dividend continued to increase, and the annual dividend to shareholders was 2.20 yuan per share, an increase of 7.3% year-on-year.
As a subsidiary of Ping An of China specializing in financial leasing, Ping An International Financial Leasing Co., Ltd. (hereinafter referred to as "Ping An Leasing") has always adhered to the main business of financial leasing, taken the road of specialization, paid attention to customer experience, and innovated business models. After eight years, the company has achieved rapid development while serving the real economy. Data show that in 2020, the company’s operating performance was outstanding, and various businesses continued to grow steadily. The company achieved a core net income of 11.326 billion yuan for the whole year, up 16% from 2019; realized a core profit of 4.484 billion yuan, up 14% from 2019, and total assets reached 2779.61 billion yuan, an increase of 9.1% from the end of the previous year; brand recognition continued to improve, and won 23 honorary awards such as "Most Respected Enterprise of the Year", "Most Influential Financial Leasing Company", and "Annual Financial Leasing Company" throughout the year. By the end of 2020, the company’s comprehensive strength ranked among the top three in the industry.
Li Wenyi, executive deputy general manager of Ping An Leasing, said that 2020 is an extraordinary year. In this year full of changes and challenges, the company has never forgotten its original intention and moved forward bravely.Adhere to serving the real economy unswervingly , providing fresh blood for the "capillaries" of economic operation – small and medium-sized enterprises, so that economic development is full of vitality;Insist on promoting industry progress and setting benchmarks We have actively introduced scientific and technological strength, laid out the ecological layout, and continuously explored innovative leasing directions such as automobile financial leasing and small and micro leasing, laying the foundation for the reform and development of the industry.Adhere to promoting industrial upgrading and development We integrate financing and financial assets to effectively promote industrial and technological upgrading and transformation, and pour leasing power into industrial transformation and upgrading.
First, focus on risk control management, multi-line coordinated and steady development
Business development is balanced, and revenue from innovative businesses has increased significantly. The data shows that in 2020, Ping An leasing mature business has developed steadily, and continues to explore new business areas. The Engineering Construction Division signed a strategic cooperation agreement with Sany Construction Engineering, laying the foundation for promoting the cooperation of prefabricated construction business; the Enterprise Rongcheng Fa City Transportation Business Group signed strategic cooperation agreements with many well-known enterprises such as Xiaoju Charging and Guodong Network, expanding and extending along the new infrastructure industry chain to find new growth engines; the Energy Metallurgy Division cooperated with a number of clean energy, energy conservation and environmental protection customers, and the green financial investment continued to improve. The company’s mature business as a whole has reached 10.90 billion, and its position is solid and stable. With the rapid development of innovative business, the automobile financial leasing business continues to expand the boundaries of the four core capabilities of standard service system, large operation system, vehicle management, and intelligent technology, and the competitive advantage is obvious; small and micro leasing takes equipment as the core, deepens the pre-equipment market, incubates the equipment post-market, forms asset management capabilities, and simultaneously promotes object life cycle services. The overall operating income of the company’s innovative business reached 5.818 billion, an increase of 73% compared with 2019, and the proportion of contribution continued to expand.
Optimize risk control system and increase safety margin retention In 2020, in the context of the macroeconomic downturn, rising debt default risks, and stricter supervision of the leasing industry, Ping An Leasing proposed the risk management positioning of the "hedging cycle", strictly controlled the entry of incremental assets, and continuously improved the four-dimensional review and control system of "industry, region, customer group, product" to form a clear credit strategy and risk appetite; strengthen operational risk management and control, and make full use of scientific and technological power to improve the quality and accuracy of risk management and control; strengthen risk early warning management, conduct regular physical examinations of assets, and "early warning, early control, and early disposal" of risks, shorten the risk asset processing cycle, and improve the efficiency of risk asset resolution. As of the end of 2020, the non-performing rate of Ping An Leasing was 1.24%, which was at a low level in the industry. The overall asset provision was sufficient, the risk resistance was strong, and the sound and perfect risk control system created favorable conditions for the stable and healthy development of the company’s business.
Give full play to resource advantages and help economic development under the epidemic. As a comprehensive solution provider serving the real economy, financial leasing allocates more financial resources to key areas and weak links of economic and social development, which is particularly obvious under the epidemic. Faced with the challenges of the COVID-19 pandemic and the complex international situation, Ping An Leasing gives full play to the business attributes of "financing + financing", continues to provide customers with a full range of capital products and value-added services. With the help of comprehensive financial strength, it expands customer channels in multiple dimensions, develops innovative products in multiple parties, and launches a series of rebound combinations to help various industries resume work and production safely, move forward in the face of adversity, and break through the predicament. It has helped the development of the real economy and achieved steady business development.
Second, focus on public leasing Boosting strategic approach and business model upgrades
Ping An Leasing always insists on strengthening its main business, laying out ecological layout, leading technology, and being a pioneer in digital leasing, industrial leasing, ecological leasing, and platform leasing. It continues to guide the healthy development of strategic emerging industries, and under the general strategy of "controlling risks and seeking progress while maintaining stability", it continuously promotes strategic upgrading, explores new business models, creates new profit growth points, and leads the innovative development of the industry.
Deep cultivation and meticulous practice, the traditional business status is prominent. As the first industry benchmark to take root in industrial leasing and make a difference, Ping An Leasing has always been based on serving the real economy, applying leasing products to a variety of industries, and is in a market leading position in many mature fields such as energy metallurgy, education and culture, engineering construction, manufacturing and processing. It continues to focus on public leasing at the product level and medium-sized enterprises at the customer base level, and allocates financial experts by industry to achieve professional operation in the industry and maintain market leadership.
From a strategic perspective, Ping An Leasing will strengthen traditional industrial leasing from three dimensions: horizontally expanding the industry, vertically deepening the customer base, and enriching products. First, horizontally expanding the industry, focusing on new areas with high growth in line with policy guidance, such as new energy, new infrastructure, etc. Second, vertically deepening the customer base, promoting differentiation strategies, and further refining the customer base. Finally, enriching products, on the basis of traditional direct leasing and leasing back products, using joint leasing, asset pooling, ABS and other products to optimize the product line, and based on customer demand scenarios, product design is carried out to meet different customer needs.
Continuously deepen exploration and create industry barriers through innovative business. In the direction of exploring innovative business models, Ping An Leasing has explored a unique set of "methodologies" in the directions of car leasing, small and micro leasing, and factoring.
In response to the differences in the attributes, types of leased goods, types of customer groups, and transaction models of the automobile circulation industry, Ping An Leasing has successively deployed new passenger cars, used car financing leasing, passenger car operating leasing, passenger car-to-public financing, commercial vehicle financing leasing, and logistics-to-public financing business. With the coordinated development of multiple business lines, in line with the needs of business development, Ping An Leasing established an automotive business department in 2020, and continued to focus on establishing a deep and rich three-dimensional car leasing ecosystem.
In order to actively respond to the call of the state to serve small and medium-sized enterprises and support the real economy, in 2020, Ping An Leasing Small and Micro Finance will insist on exploring new business formats, continuously innovate business models, and build a financing service system covering the whole life cycle of small and micro enterprises. So far, it has provided over 37 billion yuan in financial support for over 30,000 small and micro enterprise customers in 31 provinces and cities across the country.
Ping An Factoring, a subsidiary of Ping An Leasing, has used its own advantages to explore the 1 + N model of supply chain finance, cut into the supply chain ecosystem, consolidate the real economy to serve the lower-tier market, and effectively reach the long-tail customer base. From 0 to 1 diversion of customer resources, to 1 to N output of standardized operations of customer needs, to ensure full coverage of the customer base and comprehensive undertaking of standardized operations. As of now, the business area has covered about 31 provinces, and the overall customer reserve has increased by 76%.
Build a "new engine" for growth, strengthen technological capabilities, and empower the main business with digital depth
Under the strategic guidance of Ping An’s "finance + technology" and "finance + ecology", Ping An Leasing actively embraces technology, rapidly builds scientific and technological strength, implements the "three modernizations" goal of "online operation, refined management, and process operation", and arranges four major modules of business, risk, management, and technology. It has initially completed the construction of functions such as automobile ecosystem, small equipment ecosystem, supply chain data platform, intelligent risk control, management digitalization, and technology mid-platform.
Technology empowers business, Optimize scenarios to enhance customer experience … The automotive ecosystem completes the construction of a used car trading platform, linking car dealers, channels, vehicle resources, etc., and completes the construction of a GPS platform to achieve full access to existing data, providing data support for fleet operations and aftermarket services.
The small equipment platform with "technology + channel" as the core driving force opens up online marketing channels for equipment manufacturers with 0 costs and 0 thresholds, and jointly develops IOT equipment bracelets using the light IoT technology of Yunyun Technology. The core technology has undergone 7 iterations, covering 100 kinds of equipment in 9 major industries; supply chain factoring builds a supply chain data platform around core enterprises to promote digital customer acquisition; intelligent risk control opens up the construction of four business systems, forms a closed loop of business whole process early warning, builds an external data evaluation system, and deepens the intelligent ability of risk management.
Technology empowers management, enhances efficiency, accelerate Digital process … The digitalization of management strengthens the management decision-making brain, continues to promote the construction of platforms such as smart economic points, smart finance, smart treasurer, smart manpower, and smart administration, and promotes the integration of online and offline management to help efficient and high-quality decision-making; the technology mid-platform has basically completed the construction of a data mid-platform integrating storage, calculation, and query, and realizes real-time calculation, distribution, and query capabilities of massive data.
In the future, Ping An Leasing will continue to strengthen technology empowerment, use technology as a "new engine" for high-quality financial development, realize technology platformization, intelligent service, and continue to provide customers with more innovative, flexible, convenient and high-quality comprehensive financial services.
On the eve of this year’s two sessions, at the national poverty reduction summary and commendation conference, it was solemnly announced that our country’s poverty reduction battle has won a comprehensive victory. As an enterprise with social responsibility, in the past year, Ping An Leasing, under the strategic guidance of the group, gave full play to the advantages of industrial leasing in the year of poverty reduction, and created a poverty alleviation ecological chain of smart poverty alleviation, precision poverty alleviation, and hematopoietic poverty alleviation to help rural people realize their pursuit of a better life. Ping An Leasing’s public welfare actions have also been recognized by all walks of life. The company won the "Annual Poverty Alleviation Award" at the "2020 People’s Corporate social responsibility Summit Forum", the 2020 Public Welfare Communication Award at the 9th China Public Welfare Festival, and the "BRICS Dream" public welfare project won the "2020 Public Welfare Project Award".
In 2020, Ping An Leasing’s "Golden Sunshine Road" public welfare plan, which fits the green energy industry and is deeply rooted in the "lease + public welfare" model, was launched in Jianzha, Qinghai and Yangbi, Yunnan, respectively, and completed the donation of 30.6 kW photovoltaic power station construction to help the sustainable development of local education with green distributed energy; through cooperation with the China Youth Development Foundation, the "BRICS Dream Building" public welfare project has successively passed through Wufeng and Honghu, Hubei, and helped young children thrive by repairing and improving campus infrastructure in poverty-stricken areas; its Ping An Car Butler "Let Love Go Home" Spring Festival public welfare activity successfully landed in Ninglang, Yunnan, helping migrant workers with difficult lives return to their hometowns for reunion, achieving small reunions and big reunions, and sending winter care to left-behind children; the company’s small and micro finance department joined hands with flagship Customers carry out "micro-public welfare love transmission" activities, and actively build a new pattern of "taking customers to do public welfare, driving institutions to do public welfare, and integrating business to do public welfare". In the future, Ping An Leasing will continue to actively practice corporate social responsibility and continue to contribute its public welfare strength through smart poverty alleviation, precision poverty alleviation, and hematopoietic poverty alleviation!
2021 is the first year of the "14th Five-Year Plan", our country’s economy is recovering steadily, and under the new development pattern of accelerating the construction of domestic circulation as the main body and domestic and international double circulation mutual promotion, Ping An Leasing will be guided by the strategic guidance of Ping An Group, based on the forefront of the industry, make full use of scientific and technological means, and combine digital operation to embark on a new and differentiated development path of financial leasing.
