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Commences Distressed Asset Management Business
Actively Explore P2P Loans and Internet Microfinance Businesses |
HONG KONG, Feb 16, 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 announced its annual results for the financial year ended 31 December 2014. Benefit from its comprehensive financing services offerings, the Group has recorded encouraging results in 2014.
In 2014, the Group's revenue increased by 55.2% to approximately RMB118,091,000 (2013: RMB 76,066,000), which was mainly contributed by its five major financing services, including: 1) financial guarantee services, 2) pawn loan services, 3) finance lease services, 4) entrusted loan services and 5) financial consultation services. Profit surged 81.5% from last year to RMB73,013,000. Basic earnings per share rose by approximately 39.0% from RMB5.25 cents in 2013 to RMB7.30 cents in 2014.
The Group has maintained a healthy financial position with a zero gearing ratio. As at 31 December 2014, total cash and bank balances and current restricted bank deposits amounted to approximately RMB252,800,000.
Mr. Hong Mingxian, Chairman of Differ Group, said, "Being the first financial services company from the West Side of Taiwan Strait listed in Hong Kong, we are pleased to record rapid and optimistic business growth. As the Group seized the opportunity presented by the increasing market demand, its business performed well and has issued positive profit alerts twice in 2014. Under the prevailing tightened credit environment, we are confident that our financing services will continue to grow in 2015. We have commenced the distressed asset management business in Fujian early this year to capture the market opportunity. In addition, we have been granted a money lender's licence in Hong Kong in November 2014 and are carefully examining the money lending business in Hong Kong in order to satisfy market needs."
Business Review
Financial Guarantee Services
The PRC banks have adopted a relatively tight credit policy in granting loans to SMEs, which explains why more SMEs need the Group's financial guarantee services. The income from this business increased by 5.3% to approximately RMB15,741,000 in 2014, mainly attributable to the number of financing guarantee contracts with revenue contribution increased from 170 in 2013 to 192 in 2014.
Pawn Loan Services
Income rose by 16.3% to approximately RMB14,814,000 in 2014. It was mainly driven by the increase in the number of pawn loan contracts with revenue contribution and the total amount of pawn loans granted under new or renewed contracts.
Finance Lease Services
The income in 2014 amounted to RMB11,286,000, surging approximately 69.6% when compared to 2013. The number of finance lease transactions was nearly doubled.
Entrusted Loan Services
In light of the strong demand for financing services from SMEs, income from entrusted loan services in 2014 soared by approximately 77.6% year-on-year to RMB39,087,000. The increase was mainly attributable to the increase in outstanding entrusted loan receivables and total amount of new or renewed entrusted loans granted.
Financial Consultation Services
While it is more and more difficult for SMEs to obtain financing from banks under tightened credit policy in the PRC recent years, more customers have sought the Group's financial consultation services which have created tremendous business opportunities. Income from the business surged by approximately 88.5% year-on-year to approximately RMB37,163,000. The number of financial consultation services also increased nearly doubled.
Mr. Hung concluded, "To align with China's economic growth and development, Fujian has become the second batch of free-trade zone following Shanghai. With our business rooted in Fujian and by leveraging the unique advantage of the province's rich material and human resources, we firmly believe in its enormous development potential. As we are very confident about the prospects of the loan market in China, we will continue to expand our financing services in Fujian so as to reinforce the Group's leading position in the industry. Meanwhile, we are actively assessing and exploring new businesses such as P2P loans and internet microfinance businesses so as to enrich our financial service mix and broaden our customer base. We have been conducting preliminary studies on these new businesses and examining the potential advantages and the synergies with our existing businesses, and striving to capture opportunities to create value for our shareholders."
Contact:
Strategic Financial Relations Limited
Heidi So +852 2864 4826 heidi.so@sprg.com.hk
Janet Fong +852 2864 4817 janet.fong@sprg.com.hk
Fax: 2804 2789 / 2527 1196
Topic: Press release summary
Source: Differ Group Holding Company Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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