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Chinese Financial Leasing: Making it Work for You
Angela ZHAO Feb 25th, 2016 CM INTERNATIONAL FINANCIAL LEASING CO., LTD
Chinese Leasing Industry
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China is the 2nd largest leasing market in the world.
By the end of 2015, there are about 4,000 leasing companies in China.
The total asset of Chinese leasing industry reached approximately $ 615 Billion in 2015.
Total Asset of Chinese Leasing Industry
4 24 57 108
143
238 323
492
615
2007 2008 2009 2010 2011 2012 2013 2014 2015
$B
I. Leasing Industry in China
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Source: White Clarke Global Leasing Report 2014
According to the data from “2014 World Leasing Yearbook”, world leasing turnover maintained a steady high speed growth from 1993 to 2012 in overall.
In 2007, the outburst of financial crisis resulted in decrease of turnover. By 2012, the world leasing fully recovered and realized transcendence with turnover of USD 868 billion.
Leasing Trading Volume in Globe Investment penetration is an important symbol to
measure leasing development condition of a country.
In the world’s developed economies, the investment penetration of Chinese leasing industry is still in lower level.
Compared to overall development level of the world, the maturity of leasing in China is still low, and still has plenty of room to grow.
Investment Penetration of Leasing
0
200
400
600
800
1,000 Trading Volume of World Leasing (Unit:…
3.8 7.2
8.5 15.8
19.8 20.8
22.0 27.5
China
South Korea
UK
US
I. Leasing Industry in China (Cont.)
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Type No. of Companies by the End of 2014
No. of Companies by the End of 2013 Growth Rate Proportion of
Company Quantity
Financial Leasing 30 23 30% 1%
Local Leasing 152 123 24% 7%
Foreign Leasing 2,020 880 130% 92%
Total 2,202 1,026 114% 100%
23 123 880 1,026
30 152
2,020 2,202
Financial Leasing Local Leasing Foreign Leasing Total
No. of Companies by the End of 2013
Source: China Leasing Alliance & Multiview Information Center
Historical Evolution — Number of Enterprises: In recent 2 years, the number of enterprises engaged in financial leasing business increased rapidly, especially the foreign-funded leasing companies which are influenced by policies.
Type (Unit: 100 MN RMB)
Total Business Volume by the
End of 2014
Total Business Volume by the
End of 2013 Increment Growth Rate
2014 Total Business Volume
Proportion
Financial Leasing 13,000 8,600 4,400 51% 41%
Local Leasing 10,000 6,900 3,100 45% 31%
Foreign Leasing 9,000 5,500 3,500 64% 28%
Total 32,000 21,000 11,000 52% 100%
Historical Evolution — Business Development Scale: With the increasing number of enterprises, business has been expanding as well. The total business volume proportion of financial leasing enterprises is outstanding, and foreign leasing increased dramatically.
8,600 6,900 5,500 21,000
13,000 10,000 9,000
32,000
Financial Leasing Local Leasing Foreign Leasing Total
Total Business Volume by the End of 2013
I. Leasing Industry in China (Cont.)
5 Source: Financial Leasing Specialized Committee of China Banking Association & Leasing Specialized Committee of CAEFI
In recent years, the market scale of RMB 2 trillion has been formed with the development of explosive speed. It fully embodies the aspiration from local market to financial leasing products. Because of the differences of regulatory paths and investment
subjects, 3 kinds of leasing companies are formed. Under the policy guidance, each kind of leasing companies also formed its own operation strategy and the overall operation is in good condition.
Financial leasing companies develop since 2008. The asset size and profitability increase year by year. By the end of 2014, the total asset reached RMB 1.3 trillion, and the net profit reached RMB 16.3 billion.
Financial Leasing Company In recent 2 years, foreign leasing companies’
development situation is relatively good. Because of the different channels of gaining operation funds, there are some differences on operational data compared to financial leasing companies. However, it also maintains higher profitability.
Foreign Leasing Company
43.12 77.79 159.07 330.47
535.9 691.46
840.1
4.13% 6.04%
8.59% 11.12%
13.85% 14.65% 11.69%
0.00%
5.00%
10.00%
15.00%
20.00%
0
500
1000
2008 2009 1010 2011 2012 2013 2014
Revenue ROEIndex Industry Mean
Average Total Asset of the
Top 10
Average Total Asset of the
Top 20 Working Capital Allocation Ratio 13.80% 11.58% 11.17%
Liquidity Ratio 1.16 2.45 2.05 ROA 1.75% 2.41% 2.27% ROE 4.79% 11.67% 11.10%
Long-term Liability
Proportion 49.03% 52.43% 51.36%
Unit: 100 MN RMB
Chinese Financial Leasing Industry
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Financial leasing companies, which are under the supervision of CBRC, are the core of Chinese leasing industry
Only around 40 financial leasing companies in China
The total asset of Chinese financial leasing industry is $230 Billion
The total asset of top Chinese financial leasing company already reached $10 billion.
Chinese Financial Leasing Industry
4,000 Leasing
Company40
Financial Leasing
Company
Shipping Portfolio Assets Value Vessels DWT M
RMB M USD M
50,000 7,692 309 400
27,500 4,231 325 600
19,000 2,923 173 -
12,300 1,892 130 220
10,100 1,554 45 -
3,100 5 -
TOP 5 Shipping Lessors in China
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By end of 2015 Including merchant ships, offshore, port facility and yard finance
General Procedure of Deal
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Deal Approach
• Any time Any where
Term Sheet
• 1-2weeks
Credit Approval
• 1 -2months
Documentation
• 1-3 weeks
Drawdown
• Depending on CPs
CM International Financial Leasing Co., Ltd.
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China Minsheng Investment Corp., Ltd. (CMI) is a leading international private investment group with RMB 50 billion in registered capital.
CM International Financial Leasing Co., Ltd., a Sino-foreign leasing joint venture invested by China Minsheng Investment Corp., Ltd. and Korea Hana Bank, was established in April 2015.
The core business sectors of CMIFL comprise of aviation, shipping, new energy and information equipment.
II. CMIFL’s Organization Structure
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China Minsheng Investment Corp., Ltd.
(“CMI”)
Hana Bank of South Korea (“Hana Bank”)
CM International Financial Leasing Corp., Ltd. (“CMIFL”)
75% 25%
Major Operations
Airc
raft
Le
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Ship
Leas
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Dept
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New
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Leas
ing
Dept
.
Info
rmat
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Equi
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Shareholder Structure Business Segments
CMIFL Shipping Business Coverage
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With the implement of "One Belt And One Road" initiative, CMIFL is accelerating its exploration of overseas markets, focusing on multiple shipping and offshore sectors.
Bulker Carrier Tanker Containership
Dredger LNG Carrier FPSO Offshore Unit
Port
g p , (“CMI”) (中国民生投资股份有限公司)
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CMI is the largest private investment company in China, organized by All-China Federation of Industry & Commerce (“ACFIC”) and launched by 59 well-known private enterprises and investors throughout China.
On 8 February 2014, ACFIC formally requested to include title of “China” in the head of company’s name from the State Council and it was approved from the State Council on 14 March 2014.
On 24 March 2014, CMI received preliminarily approval of company name from the State Administration of Industry and Commerce; On 25 March, CMI opened capital verification account, and the first batch paid-in capital has been in place.
CMI was established and registered in Shanghai in May 2014, with a registered capital of RMB 50 billion (equals to abt. USD 8.1 billion) and the first batch paid-in capital is RMB 33.2 billion (equals to abt. USD 5.4 billion). CMI’s business scope includes equity investment and its management, business consulting, financial consulting, industrial investment, asset management and investment consulting.
Company’s ownership structure is disperse and corporate management structure is consummate. The board currently consists of 14 members. Under the board, there are strategy management committee, investment management committee, risk management committee, compensation committee, nomination and personnel committee, affiliate transaction committee, advisory committee and audit committee.
Company Overview
III. CMI’s Member Companies
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China Minsheng Investment Corp., Ltd.
CM In
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Leas
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Chin
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Capi
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Man
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Min
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Chi
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New
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Chin
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Jiaye
Inve
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Chin
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Prop
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Chin
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Inte
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JV b
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CM C
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Sav
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Inve
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Siriu
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Grou
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Future
What We Care
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Positive free cash flow Reliable financial position
Strong support from shareholder
Beautiful asset: lucrative entrance point compared to historic levels of asset values
Innovative Total Solution Provider
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Financial Lease Operating Lease Bareboat Charter, Time Charter
COA
Equity Finance
Mezzanine Finance
Shipping Fund
business model
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利差
rental income
Asset Appreciation
Equity Appreciation
• BBC(financial leasing) • Operating leasing • Time charter • COA • Profit sharing
• Resale profit sharing with charter • Sale gain from own fleet
• Share price up of listed company • IPO • Asset package sold to listed co
Management Fee and Carry under ship fund
CMIFL Shipping Business Partner
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Many thanks for your attention
欢迎垂询我们的船舶海工团队
Please contact CMIFL Shipping & Offshore Team:
Simon LIU / E: [email protected] / M: +86-139 1039 3966
Angela ZHAO (Mrs.) / E: [email protected] / M: +86-139 1038 4216
Yao ZHANG / E: [email protected] /
Leo LIU / E: [email protected]/
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