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| Business Expansion Continues with Net Revenue Increases by 30.2% YoY |
HONG KONG, Mar 30, 2015 - (ACN Newswire) - China Huirong Financial Holdings Limited ("China Huirong" or the "Company", and, together with its subsidiaries, the "Group"; stock code: 1290.HK), a leading short-term secured financing services provider in China, today announced its audited results for the year ended 31 December 2014 (the "Reporting Year").
China Huirong maintained its growth momentum in financial results. Net revenue of the year 2014 was approximately RMB 335.0 million, representing a year-on-year growth of 53.6%; profit attributable to equity holders reached approximately RMB 165.0 million, representing a year-on-year growth of 30.2%; interest income surged by 64.3% to approximately RMB 389 million, mainly attributable to the growth in loans granted to customers. For the year ended 31 December 2014, total equity was approximately 1,500.1 million, representing an increase of 12.8% year-on-year. The Board has proposed to declare a final dividend of HK$0.055 per share in respect of the year ended 31 December 2014 (2013: nil).
During the Reporting Year, the registered capital of the Group increased from RMB 500 million to RMB1,000 million, which further consolidated the leading position of the Group in the industry. Meanwhile, total new loan amount granted reached approximately RMB 3,628 million with a year-on-year increase of 206.9%. Total number of new loans granted increased from 108 in 2013 to 256 in 2014, up 137% year-on-year. In the expansion of business scale, the Group at the same time focused on the provision of short-term secured financing with a short cycle and fast recovery. During the Reporting Year, the average loan repayment period shortened from 149 days to 78 days in 2014. Gross loan yield slightly increased 0.3 percentage points to 32.6%.
Besides providing pawn loans secured by real estate, equity interest or personal property collateral, the Group started to provide entrusted loans since 2014. An entrusted loan is a lending arrangement whereby China Huirong provide funds to an entrusted bank and the bank will on-lend the funds to the designated customer according to the Group's specific instructions as to the identity of the borrower, loan amount, term and interest rate, and assist in collecting the loan. The related business has a remarkable performance in the first year of operation.
Since the beginning of 2015, China Huirong has been actively adopting difference measures for business expansion, including launching of an online "peer-to-peer" lending ("P2P Lending") platform, expansion of businesses to areas outside Suzhou, etc. On 30 March 2015, Suzhou Huifang Tongda Information Technology Co., Ltd., an indirect wholly-owned subsidiary of the Group, and Jiangsu Wuzhong Jiaye Group Co., Ltd. The Group also entered into the agreement pursuant to which the Group has conditionally agreed to purchase 40% of the equity interests in Suzhou Wuzhong District Dongshan Agricultural Microfinance Co., Ltd. ("Dongshan Microfinance"), for a cash consideration of RMB126 million. The registered capital of the Dongshan Microfinance is RMB3 million. For the year ended 31 December 2014, its net profits increased by 32.1% year-on-year to RMB45.87 million. Total assets reached RMB451 million.
The Group believes that through the acquisition, China Huirong is able to expand its business into the provision of microfinance services. This enables the Group to capture a group of customers that is different from the existing customer type. Apart from expanding into the business of microfinancing, the Group will also expand into the credit-guarantee business through the acquisition, which is believed to be highly complementary to the Group's existing principal "pawn loan" business and able to create new income streams for the Group. These new businesses are expected to be able to help develop the Group into a comprehensive financial services provider offering a wider variety of financing solutions to a wider group of potential customers.
Mr. Chen Yannan, Chairman and Executive Director of the Board of China Huirong, said, "Looking ahead in 2015, the Group will further consolidate the leading position as a short-term secured financing service provider in China and will continue to provide services to SMEs in Jiangsu Province. Internet financing business has become one of the core strategies for the future development of China Huirong. At the beginning of this year, our online P2P lending platform Suzhou Money (www.suzhoumoney.com) was launched and its total transaction volume of has exceeded RMB 20 million since it commenced operation within three months. The approval for the establishment of the Group's two new branches in Nanjing and Nantong areas in Mid March has led to our sales network expanded to 13 branches in Jiangsu Province in total, maintaining our leading position in the province and in China. On the other hand, the Group plans to apply the retained earnings for the acquisition of a small loan company in Jiangsu Province to further expand our customer base and integrate with the P2P financing service in order to develop the Group into a comprehensive financing service provider. We will strive to provide diversified financing services to our customers and create more value for our shareholders."
About China Huirong Financial Holdings Limited.
China Huirong Financial Holdings Limited ("Huirong" or the "Company", and, together with its subsidiaries, the "Group"; stock code: 1290.HK) is a leading short-term secured financing service provider in China in terms of approved registered capital. The Group specializes in offering SMEs, business owners and individuals short-term loans secured by real estate, equity interest or personal property collateral. The Group has been engaged in the Internet banking services business since early 2015. As of 31 December 2014, the Company has operated in Suzhou city and the four county-level cities that are governed by the Suzhou city government, or the Greater Suzhou Area, for more than 15 years. Through growth over the years, it now owns a sales network of 11 branches. With the continual growth in revenue, registered capital and loans portfolio, the Company maintains a leading position as a financing service provider in Jiangsu Province and in China.
Issued by Porda Havas International Finance Communications Group for and on behalf of China Huirong Financial Holdings Limited:
Porda Havas International Finance Communications Group
Ms. Kelly Fung Tel: + 852 3150 6763 kelly.fung@pordahavas.com
Ms. Camille Xiong Tel: + 852 3150 6799 camille.xiong@pordahavas.com
Mr. Daniel Ip Tel: + 852 3150 6767 daniel.ip@pordahavas.com
Ms. Coco Cheng Tel: + 852 3150 6795 coco.cheng@pordahavas.com
Ms. Rose Guo Tel: + 852 3150 6704 rose.guo@pordahavas.com
Ms. Jessica Li Tel: + 852 3150 6702 jessica.li@pordahavas.com
Fax: +852 3150 6728
Topic: Press release summary
Source: China HuiRong
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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