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Captures the Enormous Opportunities Arising from National Policies;
Further Increases Business Flexibility;
Reinforces Its Leading Position in Financing Services Industry |
HONG KONG, Aug 17, 2015 - (ACN Newswire) - Differ Group Holding Company Limited ("Differ Group" or the "Group") (stock code: 6878), a leading provider of short to medium-term financing and financing-related solutions in China, has announced its interim results for the six months ended 30 June 2015. As the Group has actively diversified its financing service portfolio, continued to strengthen its business foundation and enhanced its core competitiveness, it has once again recorded encouraging results in the first half of 2015.
The Group's interim revenue in 2015 increased by 66.3% to approximately RMB92,711,000 (corresponding period in 2014: RMB55,742,000), which was mainly contributed by its six major financing services, including: 1) financial guarantee services, 2) pawn loan services, 3) finance lease services, 4) entrusted loan services, 5) financial consultation services and 6) distressed asset management ("NPL"). Profit surged by about 76.1% from last year to RMB59,256,000. Basic earnings per share rose by approximately 76.5% from RMB3.36 cents in the corresponding period of 2014 to RMB5.93 cents in 2015.
The Group maintained a healthy financial position with a zero gearing ratio. As at 30 June 2015, total cash and bank balances and current restricted bank deposits amounted to approximately RMB300,900,000.
Mr. Hong Mingxian, Chairman of Differ Group, said, "The Group has achieved a remarkable performance in the first half of 2015. The diversified development of the existing businesses has shown huge potential and the room for further growth. Successful transfer from the Growth Enterprise Market to the Main Board can further strengthen the Group's growth momentum, enhance its business flexibility and boost the Group's corporate image and share liquidity. Meanwhile, the implementation of the Fujian free-trade zone, 'One Belt One Road' and 'Internet +', there national policies are expected to present enormous opportunities to Differ Group's future development. The Group will capture the development opportunities provided by the policies, continue to enhance the existing six major financing businesses, while actively explore and extend our business directions in order to build a comprehensive financing platform."
Business Review
Financial Guarantee Services
With the tighten credit policy in the PRC, it has brought opportunities to the Group from SMEs' need for financing and the Group will continue to expand its financing guarantee services in Fujian Province. Revenue from this business increased by 5.2% from the corresponding period in 2014 to approximately RMB8,808,000 in 2015.
Pawn Loan Services
Revenue rose by 13.7% to approximately RMB8,245,000 from the previous corresponding period, mainly attributable to the increase in outstanding pawn loan receivables.
Finance Lease Services
Differ Group's finance lease services recorded a revenue of RMB7,743,000 in the first half of 2015, an increase of approximately 38.3% compared to the corresponding period in 2014. By making use of proceeds from the placing, the Group provided more financing to customers throughout the year 2014. After starting the finance lease arrangement, the Group should receive a series of monthly rental payments over the finance lease period (2 to 3 years), therefore more revenue has been generated during the review period.
Entrusted Loan Services
The Group's revenue from the entrusted loan services grew by 55.9% from RMB12,886,000 in 2014 to RMB20,090,000. The increase was mainly due to the increase in the total amount of entrusted loans granted for new or renewed contracts.
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. In the first half of 2015, Differ Group's revenue from this business has amounted to RMB32,825,000, a surge of 51.8% compared to the previous corresponding period. The Group charged its customers 2.5% to 3.0% of the amount of financing obtained. The increase of financial consultation services revenue was mainly due to the provision of more successful and large project-based consultation services during the review period.
Distressed Asset Management ("NPL")
The Group commenced its distressed assets management business in January 2015. In late June 2015, the Group disposed one distressed asset (of which acquisition was carried out at RMB35,000,000) and recorded disposal gain of approximately RMB15,000,000 as a result.
Mr. Hong concluded, "As an integrated financing service solution provider and a leading enterprise in Fujian, Differ Group has proactively responded to the market demand by constantly strengthening its existing business foundation and pursuing innovation in the industry. To seize the market opportunities, the Group will continue to diversify its financing services, strive to explore new income sources and expand the distressed asset management business. Meanwhile, the Group has been closely monitoring and conducting preliminary studies on the new businesses such as P2P loans and internet microfinance businesses in order to strengthen our competitive advantages in the market. We are very confident that this can create sustainable growth momentum for the Group's future development and maximise returns 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
Angel Li +852 2864 4859 angelok.li@sprg.com.hk
Fax: +852 2804 2789 / +852 2527 1196
Topic: Press release summary
Source: Differ Group Holding Company Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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