June 8, 2011
On June 8, Union Trust Limited, as the third trust company to be controlled by a commercial bank approved by the State Council in China, will be renamed China Industrial International Trust Limited (Industrial Trust) as from the day it was acquired by Industrial Bank Co., Ltd. with the approval of China Banking Regulatory Commission.
Established in March 2003 and registered in Fuzhou, Fujian Province, China Industrial International Trust Limited (formerly Union Trust Limited) is the only trust company in Fujian Province (excluding Xiamen Special Economic Zone), and is also among the first group of trust companies to introduce strategic investors from abroad. On January 30, 2011, with the agreement of the State Council and the approval of the China Banking Regulatory Commission, Industrial Bank Co., Ltd. respectively purchased the assigned 15.69%, 25.49% and 10% stock rights of Industrial Trust held by New Hope Group Co., Ltd., Sichuan South Hope Enterprises Co., Ltd. and Fujian Overseas Chinese Investment Co., Ltd., becoming the majority stockholder of Industrial Trust. Currently Industrial Trust has become the third trust company controlled by a commercial bank following Bank of Communications International Trust Co., Ltd. and CCB Trust Co., Ltd.; this signifies that the integrated operations of commercial banks of China have taken a new stride.
Through restructuring and integrating for over a year, Industrial Trust has constructed a good corporate governance structure, established and improved its risk management and internal control mechanism, and has had its finance license renewed successfully. Witnessing effective improvement of its management situation and leaping development of its business scale and economic benefits, the company has reached its best level in terms of all major operational indicators since its establishment. In particular, it has formed certain business characteristics and imposed market influence in the area of securities investment trust. By the end of 2010, the total assets of Industrial Trust had reached RMB 879 million, and the balance of trust business assets were RMB 32.650 billion; the company registered a total profit of RMB 103 million, and net profit of RMB 75.89 million. Since its founding, Industrial Trust has in undertaken 520 trust projects in total and has completed 370. All settled trust plans were honored duly or in advance and the returns on all trust products reached or outperformed the expected yields; the existing trust properties are in normal operation. Since June 2010, the company began to set foot into the securities trust business field. In less than a year, the scale of its securities trust business reached over RMB 17 billion, of which the sunshine private placement trust reached over RMB 12 billion, ranking front in the trust field. It has also established a business partnership with most of the top 50 superior private placement fund companies in China. At the same time, the organization structure and network of Industrial Trust has been improved and its financial equity investments also made great breakthroughs. Up until now, Industrial Trust has established 9 integrated management departments, 11 business development departments in major economic centers around China, and 1 customer marketing service department, with its business, customers and service networks spanning the main regions across China. It is also an equity participant in Zijin Mining Group Finance Co., Ltd. and GF Huafu Securities Co., Ltd. Industrial Trust also plans to jointly establish UNI-IB Fund Management Co., Ltd with Uni-President Securities Co., Ltd. and Xiamen International Trade Group, this company is in the preparation and application stage. If its establishment is approved, it will become the first fund management company in Fujian Province and the first fund management company with a Taiwanese shareholder in China. In the Third Appraisal of the China Outstanding Trust Companies held by Securities Times in 2010, Industrial Trust won many awards such as the “Most Influential Trust Company in China”, “Best Equity Investment Trust Plan”, and “Best Portfolio Investment Trust Product”.
A related person-in-charge of Industrial Trust expressed that commercial banks and trust companies are highly complementary to each other in terms of systems, resources, and brands, etc. and a trust company controlled by a commercial bank will help to integrate and improve the allocation of financial resources and provide more efficient and comprehensive financial services of a higher quality to customers. Industrial Bank, as the majority stockholder of Industrial Trust, has lent great help to the latter in the aspects of improving corporate governance, strengthening internal controls and risk management, raising operation and management levels, and pushing the healthy and sustained development of the business, etc., with significant achievements. In this instance it is beneficial to rebuild the market image and corporate culture of the company to officially rename “Union Trust Limited” as “China Industrial International Trust Limited”. This will drive all businesses of the company to develop in a sustained, rapid and healthy actions and the company will provide increasingly superior financial trust services for the economic and social development of the Western Straits Economic Zone and even for the whole country.
The person-in-charge also expresses that the advantages to shareholders of Industrial Trust after restructuring, especially the advantages of the majority stockholder, will help realize the resource sharing between the company and the majority stockholder in respect of products, channels, brand, and customers, etc., thus achieving strategic cooperation and business coordination. Industrial Trust is confident that it will grow into an outstanding integrated trust service supplier and top investment management supplier in China within five years, thus becoming a diversified and distinctive first-class trust company of the nation.