CP, True Leasing, SCG, Toyota, and CJPT sign Memorandum of Understanding to Further Accelerate Cross-Industry Efforts Towards Achieving Carbon Neutrality in Thailand

Charoen Pokphand Group (CP), True Leasing (TLS), Siam Cement Group (SCG), Toyota Motor Corporation (Toyota), and Commercial Japan Partnership Technologies Corporation (CJPT) have signed a Memorandum of Understanding (MOU) to further accelerate collaboration towards achieving carbon neutrality in Thailand. This MOU is based on achievements to date in our joint efforts, including logistics efficiency at CP and SCG sites and the introduction of carbon-neutral mobility based on usage in Thailand.

(Left to right) Hiroki Nakajima, President of CJPT; Soopakij Chearavanont, Chairman of CP; Koji Sato, President and CEO of Toyota; Dhanin Chearavanont, Senior Chairman of CP; Akio Toyoda, Chairman of Toyota; Roongrote Rangsiyopash, President and CEO of SCG; Suphachai Chearavanont, CEO of CP; Kachorn Chiaravanont, President of True Leasing and Member of Executive Committee of CP

Based on an agreement built on the deep trusting relationship between CP’s Senior Chairman Dhanin Chearavanont, President and CEO of SCG Roongrote Rangsiyopash, and then-President Akio Toyoda of Toyota; CP, TLS, SCG, Toyota and CJPT have been promoting initiatives in the three areas of data, mobility, and energy. Efforts are underway while considering how they can contribute to the happiness of the 67 million Thai citizens under the concept of doing what can be done now, together with like-minded partners.

There are three areas of focus: Data Solutions, Mobility Solutions, and Energy Solutions. In Data Solutions, we improved loading efficiency and optimized delivery routes by utilizing big data from CP and SCG’s retail and logistics operations as well as traffic flow and vehicle data. At the stores where we conducted the demonstration, we confirmed approximately 15%*1 immediate reduction in CO2emissions.

For Mobility Solutions, we introduced a variety of vehicles, including FC Trucks, the Hilux Revo BEV concept, the JPN TAXI LPG-HEV, and mini-commercial light vans (Kei) based on how they are used in Thailand. The vehicles were used in the demonstration for logistics and human flow operations. We confirmed approximately 68 tons/year*2 reduction in CO2 emissions. In addition, we succeeded in flight verification of the FC Drone for fertilizing, seeding, and other tasks at a CP Farm.

For Energy Solutions, we introduced, for the first time in Thailand, equipment to produce hydrogen using biogas derived from Charoen Pokphand Foods poultry farm manure and food waste at Toyota’s bases, for the effective use of energy unique to Thailand. The hydrogen was used as fuel for FC Trucks and the FC Drone―and in a racing car at the end of December. In addition, we have plans to conduct a demonstration on energy management at our sites using solar power generation and a Battery Energy Storage System.

As the next step, under the concept of various approaches and depending on the usage in Thailand, we will contribute to carbon neutrality using HEVs or Kei that are immediately required in Thai society, as well as the further introduction of FCEVs and BEVs.

We are also taking on the challenge of energy efficiency improvement and cost reduction throughout the entire process of producing, transporting, and using energy by using renewable energy suited to resource conditions and usage in Thailand.

To improve logistics efficiency through data, we will utilize CP and SCG’s data in retail and logistics as well as Toyota’s Digital Twin Technology to optimize the flow of personnel, logistics, and energy by collaborating with a social system, such as energy management and traffic control, etc.

To accelerate those initiatives, under the unified MOU and with the new company Commercial Japan Partnership Technologies Asia Co., Ltd. established in Thailand, we join forces across industries to realize a carbon-neutral society that is unique to Thailand, starting from Thailand and needed by other countries.

(Left to right) Hiroki Nakajima, President of CJPT; Koji Sato, President and CEO of Toyota; Soopakij Chearavanont, Chairman of CP; Roongrote Rangsiyopash, President and CEO of SCG; Kachorn Chiaravanont, President of True Leasing and Member of Executive Committee of CP

(1) Converted CO2 equivalents from driving distance reduction by improved loading efficiency and optimized delivery routes as an effect of the demonstration
(2) Converted to a full year’s worth of CO2 emissions from “Tank-to-wheel” CO2 reduction compared to conventional vehicles, based on total fuel consumption during the demonstration trial.


Topic: Press release summary

CDB Leasing Announces 2021 Interim Results

China Development Bank Financial Leasing Co., Ltd. ( “CDB Leasing” or “the Company”; stock code: 1606.HK) announces its interim results ended June 30, 2021 (the “Reporting Period”).

Results Highlight:
For the six months ended June 30, 2021:
— Total lease financing to lessees amounted to RMB57.1 billion, representing an increase of 12% YOY;
— Net profit reached RMB1.8 billion, representing an increase of 46.2% YOY;
— Total revenue and other income was RMB10.4 billion, representing an increase of 8.6% YOY;
— Total assets reached RMB311.52 billion, representing an increase of 2.7% as compared with that as of the end of last year;
— Return on average equity was 13.33%, representing an increase of 3.5 percentage points as compared with that for the same period of last year;
— Non-performing asset ratio was 0.78%, representing a decrease of 0.02 percentage point compared with that as at the end of last year;
— Continue to maintain high credit ratings, “A1” by Moody’s, “A” by Standard & Poor’s and “A+” by Fitch.

In the first half of 2021, CDB Leasing maintained strategic determination, strengthened responsibility, adhered to new development concepts, steadily promoted high-quality development, and achieved good results in business investment, risk prevention and control, internal management, etc. During the Reporting Period, the Company’s total revenue and other income was RMB10.4 billion, representing an increase of 8.6% YOY; net profit amounted to RMB1.8 billion, representing an increase of 46.2% YOY, primarily due to 1) the growth in total leased assets resulting from the increase in financing to lessees, 2) the substantial year-on-year increase in revenue from ship operating lease business, 3) the decline in the rate of financing cost of US dollars, 4) the year-on-year decrease in impairment losses this year as COVID-19 pandemic was under control in China.

During the Reporting Period, CDB Leasing strengthened the customer-centric business development model to improve the quality and efficiency of business development. The Company deepened its research and analysis system, kept abreast of internal and external changes, sorted out and conducted analysis on factors affecting business operations and development opportunities to improve the foresight and effectiveness of business decisions. Based on the changes in business landscape and the characteristics of customer demand, the Company improved the customer management plans, improved active services, and ensured the implementation of project development. In the first half of 2021, the Company’s leasing investment remained at the forefront of the industry, and its customer-centric model continued to yield good results.

Besides, CDB Leasing sped up the improvement of business development, increased the coverage of key strategic regions, and effectively served strategic emerging industries, green development, inclusive finance and other key fields. In the first half of 2021, the Company’s business investment in key strategic regions such as the Yangtze River Economic Belt and Guangdong-Hong Kong-Macao Greater Bay Area increased by 16.7% YOY, accounting for 84.0% of its total investment. Its investment in strategic emerging industries grew by 15.8% YOY. CDB Leasing leveraged its advantages in leasing products to support green development and pollution prevention and help implement “carbon peak and neutrality” initiatives. As a result, its investment in the new energy sector increased by 52.6% YOY. The Company also followed the guidance of national policies to promote inclusive financial services. Its investment in construction machinery and commercial vehicles increased by 40.0% YOY, with more than 34,000 units of new equipment for lease being added. In addition, the Company accelerated the application of fintech, developed self-risk control models, built an intelligent management system, and promoted the transformation of the vehicle business to the passenger car terminal retail business to make new development in passenger car business.

In terms of the aviation business, CDB Leasing deeply analyzed the global air cargo market, and took the lead in promoting passenger-to-cargo conversions in the industry, thus reducing the pressure on the depreciation of old wide-body aircraft. Due to obvious economies of scale and strength, the Company has been able to leverage its aircraft leasing platform to work with existing and new airline customers and other industry stakeholders to support the sector’s recovery, while strengthening the platform’s capabilities and financial position to enable further growth and ensure sufficient liquidity for the future. During the Reporting Period, the Company signed new lease transactions for a total of 31 aircraft with 11 customers, sold 4 aircraft, added 3 new lessees and acquired 14 aircraft on operating lease. As at June 30, 2021, the total assets of the aircraft leasing segment amounted to RMB 81,648.3 million; total revenue and other income from the segment recorded RMB3,656.8 million.

As for Infrastructure leasing business, relying on China Development Bank’s resources advantages in the infrastructure sector, the Company focused on key national strategic development regions such as the Yangtze River Economic Belt, Guangdong-Hong Kong-Macao Greater Bay Area and Beijing-Tianjin-Hebei region, implemented arrangements for “carbon peak and neutrality”, stepped up support in the area of green and low carbon circular economy, facilitated the implementation of the domestic demand expansion strategy, and supported the development of green finance and the real economy, resulting in additional lease financing to lessees of RMB31,742.9 million during the Reporting Period, representing an increase of 9.5% YOY. As at June 30, 2021, the total assets of the infrastructure leasing segment amounted to RMB152,638.5 million, representing an increase of 12.2% compared with that as at the end of last year; total revenue and other income from the segment recorded RMB3,748.2 million, representing an increase of 19.4% YOY.

The profit contribution of ship leasing business increased substantially year on year. The Company further boosted the overall increase in new and second-hand bulk carriers to promote “domestic shipbuilding” and support the development of domestic shipbuilding enterprises based on the high-quality development concept. The remarkable profit contribution in the first half of the year proved how forward-looking and scientific the Company was to strategically develop ship operating lease business, and served as an affirmation of its enhanced professional capabilities in ship leasing business. On the one hand, the Company seized opportunities for cooperation with top clients and solidly developed ship finance leasing business; on the other hand, the Company strengthened industry research with a focus on the impact of COVID-19 pandemic on the development trends of the shipping market, and stepped up the efforts to develop ship operating lease business. During the Reporting Period, the number of decisions and contracts signed for the Company’s ship operating lease business reached a record high. The Company successfully delivered 36 ships, including 13 newly built ships and 23 second-hand ships. As at June 30, 2021, the total assets of ship leasing segment amounted to RMB37,433.7 million, representing an increase of 9.5% as compared with that as at the end of last year; total revenue and other income from the segment reached RMB1,991.3 million, representing an increase of 122.2% YOY.

2021 marks the first year of the 14th Five-Year Plan for CDB Leasing’s inclusive finance business. The Company, on the one hand, uphold the “market-oriented” and “professional” development concept, proactively improve the ability to serve the real economy with inclusive finance, and provide efficient and convenient financial leasing services to small, medium and micro customers; on the other hand, accelerate the stable development of the Company’s inclusive finance business, build an inclusive finance system with “controllable risks, a considerable scale, strong professionalism, a prominent brand, and excellent assets”, and vigorously promote the shift of inclusive finance business from traditional sectors to digital fields, so as to create another growth driver for the Company. During the Reporting Period, CDB Leasing further refined the business process management and constantly optimized and improved the business system, thus laying a solid foundation for the digital transformation of inclusive finance business. As at June 30, 2021, the total assets of the Company’s inclusive finance business amounted to RMB29,997.6 million, representing an increase of 19.4% compared with that as at the end of last year; total revenue and other income from the segment reached RMB717.0 million, representing an increase of or 14.9% YOY.

Improve overall management of assets and liabilities; enhance the compliance and internal control system
During the Reporting Period, CDB Leasing has improved the overall management of assets and liabilities, and established a regular mechanism to control interest rate and exchange rate risks. The Company accelerated the issuance of financial bonds and revived existing assets through multiple channels, as well as formulated the Company’s capital replenishment plan and continuously consolidated the foundation for business development. In the meantime, the Company strengthened risk control in key areas, enhanced the comprehensive system, and enhanced risk control capabilities. Specifically, the Company developed a list of customers and projects subject to risk warning and monitored it, accelerated risk mitigation for key projects, and maintained the overall stability of asset quality. Additionally, the Company insist on compliance principles to improve the compliance and internal control system.

Keep promoting IT system construction and consolidating information security foundation
During the Reporting Period, CDB Leasing continued to promote information system construction and data governance to consolidate the Company’s information security foundation. On another hand, the Company developed intelligent data platform, core leasing business system, passenger car system and other relevant systems to support business development; as well as implemented regulatory requirements, reinforced data governance, thoroughly searched for deficiencies in data standards, and strengthened information and data security management; and further improved the Company’s IT infrastructure and network security system.

According to the announcement, looking forward, CDB Leasing will balance the development relationship among scale, quality and efficiency, strengthen market analysis and judgment, track customer needs, seize business development opportunities, actively promote business innovation, and constantly enhance internal operation management. Meanwhile, it will continue to strengthen the risk and compliance management system, consolidate the business operation foundation, and pave the way for the Company’s development during the 14th Five-Year Plan period.

About China Development Bank Financial Leasing Co., Ltd

China Development Bank Financial Leasing Co., Ltd. (stock code: 1606.HK; “CDB Leasing”), a national non-banking financial institution regulated by CBIRC, is the first listed financial leasing company in Mainland China and the sole leasing business platform and listing platform of China Development Bank. Its leasing assets and business partners reach throughout over 40 countries and regions around the globe. The Company enjoys relatively high international credit ratings, namely “A1” by Moody’s, “A” by Standard & Poor’s and “A+” by Fitch. Founded in 1984, CDB Leasing is a pioneer and a leader in the leasing industry in the PRC, and is in the first batch of leasing companies established in the PRC. Adhering to the mission of “leading China’s leasing industry, serving the real economy”, CDB Leasing is dedicated to providing comprehensive leasing services to high-quality customers in fields including aviation, infrastructure, shipping, inclusive finance, new energy and high-end equipment manufacturing.


Topic: Press release summary