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- New P2P Loan Consultancy Services and Online Third Party Payment Service Start Revenue Contribution;
- Acquires a Number of Related Businesses to Strengthen Market Position in the PRC Internet Financing Business |
HONG KONG, Aug 12, 2014 - (ACN Newswire) - Credit China Holdings Limited ("Credit China" or the "Company") (Stock code: 8207), one of the leading financing service providers in China, announced the interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2014 ("2014 1H"). The Group has taken further steps in expanding into the internet financing market in the PRC, achieving a more optimised business structure.
During 2014 1H, the Group recorded a revenue of approximately RMB171.6 million, representing an increase of 27.5% as compared to the same period last year. (2013 1H: RMB134.6 million). The revenue growth was mainly attributable to the increase in interest income from the Group's entrusted loan service and micro loan service, as well as the new income streams from providing P2P loan consultancy service and online third party payment service. In view of the rapid growth of micro loans scale, the Group adopted a more prudent accounting policy by providing allowance for loan receivables for its micro loads in an amount of approximately RMB9.5 million. The increased in financing costs from bank loans also made temporary impact on the profit, leading to a decline in the profit attributable to owners of the Company to RMB44.2 million (2013 1H: 61.4 million).
Mr Li Mingshan, Chairman of Credit China, said," We are pleased with the solid progress the Group has made in capturing the enormous opportunities arising from internet finance, especially with the reassuring rapid growth of the online third-party payment service. The commencement of the internet housing loans and internet automobile loans has allowed the Group to form an innovative and unique business model in the P2P internet loan industry, which is poised to bring about great synergies as the platform becomes more scalable."
Striving Towards the Goal of a Leading Internet Finance Service Provider
Continuing its efforts in transforming the business focus to the internet financing business, the Group has seized the opportunities in acquiring relevant businesses and forming strategic alliance during 2014 1H. In March 2014, the Group has forayed into the internet housing loans market under the brand name "First House Loan". Furthermore, the Group entered into an agreement for acquiring an 80% equity interest in a PRC company which is principally engaged in the development and operation of automobile financing products for the provision of internet car loans under the brand name of "First Automobile Loan". According to the unaudited operating statistics of the Group, for the six months ended 30 June 2014, total transaction value of "First House Loan" was RMB431.3 million since the commencement of its operation in April 2014, while for the seven months ended 31 July 2014, the transaction value reached RMB631.0 million. For the six months ended 30 June 2014, total transaction value of "First Automobile Loan" was RMB108.2 million, while for the seven months ended 31 July 2014, the transaction value reached RMB156.4 million. The Group's P2P loan consultancy service in relation to its internet house loan and car loan services have started to contribute to the Group's revenue in the second quarter of 2014.
Strategic Acquisitions Create Synergies
On 11 August 2014, the Group announced the acquisition of Beijing Phoenix through the Structured Contracts at a consideration of RMB50,000,000 to be satisfied in cash. Beijing Phoenix is primarily engaged in online P2P lending, thus the acquisition will further diversify the Group's internet finance sector. As of 31 July 2014, total registered users of Financial Workshop Website, the online P2P platform held by Beijing Phoenix, are 7869, while the total online P2P loans of Financial Workshop Website are approximately RMB265 million. There is synergy between Financial Workshop Website and the Group's other microfinance business.
On the same time, the Group also announced the acquisition of a total of 49% equity interest in Hainan Pioneer Internet Microfinance Limited at a consideration of RMB49 million. Hainan Pioneer Internet Microfinance Limited is the first batch of microfinance companies permitted by the Hainan Province, the PRC to release loans through the internet outside the Hainan Province and to provide financing services to small and medium enterprises within the Hainan Province. The Acquisition will not only expand the Company's existing microfinance service business but also boost the Company's future development in the business of internet finance.
Internet Finance to Fuel Future Growth
Looking ahead, the Group will accelerate the development of its internet financing business through enhancing experiential customer service and exploring innovation in the business model. This strategic focus will drive the long-term sustainable growth of the Group. At the same time, the Group will continue to sustain its competitive strengths in providing traditional financing services to small and medium-sized enterprises as well as individuals in the PRC and Hong Kong.
Mr. Phang Yew Kiat, Vice Chairman and Chief Executive Officer of Credit China, said, "We will continue to expand the business and strengthen implementation capacity through mergers, acquisitions, partnerships and alliances with an aim to enhance Group's competiveness and its growth potential. We are confident that the Group's proven capabilities in providing both traditional and internet financing services will enable us to consolidate our industry position and capitalise on the tremendous opportunities that arise from the technological advancement and commercial model innovation in China."
Contact:
Strategic Financial Relations Limited
Vicky Lee +852 2864 4834 vicky.lee@sprg.com.hk
Agnes Luo +852 2864 4851 agnes.luo@sprg.com.hk
Isabel Kwok +852 2864 4824 isabel.kwok@sprg.com.hk
www.sprg.com.hk
Topic: Press release summary
Source: Credit China Holdings Limited
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
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