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- Commences Distressed Asset Management Business
- Actively Explores New P2P Credit and Internet Microfinance Businesses |
HONG KONG, Jan 8, 2015 - (ACN Newswire) - Differ Group Holding Company Limited ("Differ Group" or the "Group") (stock code: 8056), a leading provider of short to medium-term financing and financing-related solutions in China, has entered into a number of financing agreements for discloseable transactions with an aggregate loan amount reaching RMB180 million in the fourth quarter of last year("2014Q4"). This amount represents a substantial growth over the same period of 2013 and demonstrates the continued strong financing demand of small- and medium-sized enterprises ("SMEs"). At the same time, the Group has commenced distressed asset management business and also actively explored new businesses such as P2P loans and internet microfinance businesses so as to enhance its business flexibility and broaden its income sources.
In 2014Q4, the Group's loan business has continued to record satisfactory income. This income has been mainly derived from the signing of a finance lease agreement for RMB50 million as well as the signing or the renewal of several agreements for entrusted loans for an aggregate amount of RMB130 million at an interest rate of 21.6% per annum. According to the data released by the People's Bank of China, the balance of SMEs loans increased by nearly 30% to RMB14.55 trillion in 2014Q3 from RMB11.29 trillion in 2012Q3, indicating the growing needs of financing. However, many SMEs still face difficulties in obtaining loans from traditional banks in China. Differ Group targets these quality SME customers by providing convenient and effective financing solutions to support their business growth, which presents enormous business opportunities.
Mr. Hong Mingxian, Chairman of Differ Group said, "We are very delighted with the remarkable business growth of the Group within just one year after listing. For the nine months ended 30 September 2014, our turnover jumped by approximately 64% year-on-year to RMB82.139 million and net profit soared by 99% to RMB50.242 million. As the first Hong Kong-listed financial service group of the West Side of Taiwan Strait, Differ Group is highly confident about its prospects in the loan market in China. We will continue to strengthen the foundation of our existing financing and consultation service businesses and also actively develop new businesses to respond to new development trends of the finance market such as internet finance thereby boosting our competitive advantages."
Furthermore, with the increasing needs of commercial banks to dispose of distressed assets, the ongoing balance sheet de-leveraging undertaken by city and rural commercial banks and credit cooperatives, the Group announced the commencement of distressed asset management business in Fujian Province on 5 January 2015 in order to capture the opportunities brought by the abundant supply of distressed assets in the region. Riding on the Group's advantage in assessing the quality and value of the distressed assets, as well as the asset buyers and sellers which might be brought by the existing customer base, the Group considers the commencement of distressed assets will be beneficial to its long term diversification.
Apart from asset management, P2P loans and internet microfinance will become the Group's new development focuses in the future. According to market data , as at November 2014, there were more than 1,500 P2P online lending platforms across China and the loan size in 2014 is expected to rapidly grow to reach RMB250 billion. The Group believes that entering the internet finance segment will not only enrich the Group's financing service portfolio, but also will expand its customer base by linking up borrowers and lenders nationwide beyond the constraints of geographical boundaries. The Group has been conducting preliminary studies on such businesses and examining their potential advantages and the synergies with its existing businesses.
In addition, Differ Group has been granted a money lender's licence in Hong Kong in November 2014, giving the Group flexibility to expand into the money lending business in Hong Kong in the future.
Mr. Hong concluded, "Looking ahead, while actively exploring new businesses opportunities, Differ Group plans to extend its business reach and expand service coverage to lay a foundation for our long-term development with the aim to capture new opportunities in the market and deliver satisfactory and long-term returns to our shareholders."
Contact:
Strategic Financial Relations Limited
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Joanne Lam +852 2864 4816 joanne.lam@sprg.com.hk
Agnes Luo +852 2864 4851 agnes.luo@sprg.com.hk
Fax: 2804 2789 / 2527 1196
Topic: Press release summary
Source: Differ Group Holding Company Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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