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Differ Group Announces First Quarter Results in 2015
Revenue and Profit Surge More than 60%
HONG KONG, May 05, 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 results for the three months ended 31 March 2015 ("2015Q1").
Financial Highlights
For the Three Months Ended 31 March
RMB 2015 2014 Change
Revenue 30,564,000 19,028,000 +60.6%
Overview: Five Major Businesses
Financial Consultation Services 9,223,000 1,982,000 +365.3%
Entrusted Loan Services 9,902,000 6,732,000 +47.1%
Finance Lease Services 3,279,000 2,699,000 +21.5%
Pawn Loan Services 4,155,000 3,635,000 +14.3%
Financial Guarantee Services 4,005,000 3,980,000 +0.63%
Profit 17,002,000 10,405,000 +63.4%
Basic Earnings/Share (RMB cents) 1.70 1.04 +63.5%
Revenue for the first quarter of 2015 increased by 60.6% year-on-year to RMB30,564,000 (2014Q1: RMB19,028,000). Financial consultation services recorded excellent performance with income increased notably by 365.3% year-on-year. Profit for the first quarter of 2015 also rose to RMB17,002,000 (first quarter of 2014: RMB10,405,000), a year-on-year increase of 63.4%. Basic earnings per share rose by approximately 63.5% from RMB1.04 cents in the first quarter of 2014 to RMB1.70 cents in the same period in 2015.
Mr. Hong Mingxian, Chairman of Differ Group, said, "The Group has previously announced its annual results for the financial year ended 31 December 2014, with an extraordinary performance of profit surging by 81.5%. Our financial consultation services and entrusted loan services in particular have shown rapid growth, which have driven both our revenue and profit to surge significant more than 60% in 2015Q1, resulting in an outstanding performance. We are monitoring the continuous development trend of our existing business, paying close attention to the development of the free-trade zone, as well as aiming to capture the immense opportunities arising from China's "One Belt One Road" strategy. Meanwhile, we will spare no efforts to explore new businesses such as P2P loans and internet microfinance so as to facilitate the diverse development of the internet finance segment based on our existing business foundation. This direction also enhances the Group's leadership position and captures the momentum arisen from the growing economy and the rising financing needs in China."
The Group recorded robust growth in the first three months in 2015, mainly attributable to its diverse financing service portfolio and its understanding of the financing market. The notable increase in income was mainly contributed by its five major financing services: 1) financial guarantee services, 2) pawn loan services, 3) finance lease services, 4) entrusted loan services and 5) financial consultation services. While it is increasingly difficult for SMEs to obtain financing from banks under the tightened credit policy in China recent years, more customers have sought the Group's financial consultation services which have thus created tremendous business opportunities. This together with the Group's strategy to enlarge its scale of services has caused income from financial consultation services to skyrocket by 365.3% to RMB9,223,000 in the first quarter of 2015. Benefitting from the strong demand for funds from SMEs, the Group's entrusted loan service income increased by 47.1% to RMB9,902,000 in the first quarter of 2015. The greater entrusted loan service income was mainly due to the nearly 40% growth in the number of entrusted loan contracts with revenue contribution. The Group has also provided more financing to its customers throughout the year 2014 and received a series of monthly rental payments over the finance lease period, therefore generating a year-on-year increase of 21.5% in finance lease service income to RMB 3,279,000 in the first quarter of 2015. The Group's pawn loan services and financial guarantee services have also increased to RMB4,155,000 and RMB4,005,000 respectively in the first quarter of 2015.
The Group has again won industry recognition during the period. Besides ranking 11th among "China's Top 100 Most Promising Listed Companies" list compiled by Forbes in early 2015, the Group's guarantee business has been named as a "Company with an AA-Credit Rating in the Financial Industry in 2015" last month by Xiamen Finance Consulting & Credit Rating Co., Ltd., an authoritative rating organisation approved by The People's Bank of China. Based on the rating standards set in "Guiding Opinions of the People's Bank of China for the Management of Credit Rating" and "Standards in the Financial Industry of the People's Republic of China - Standardisation of Credit Rating in the Credit Market and Inter-bank Bond Market", the organisation assessed the Group in the areas of its basic guarantee situation, financial position in the past three years, operating level, profitability, corporate risk and current operating development. The Group earned the higher AA-credit rating after strict analysis and examination by Xiamen Finance Consulting & Credit Rating's experts.
Mr. Hong concluded, "We have submitted the application for the transfer to the Main Board listing in March this year, which we believe this will boost the Group's overall competitiveness, further enhance our leading position in the financing service industry and lay a long-term development foundation. We are confident that our financing services will continue to grow in 2015. We are also honoured to have forged the strategic alliance with BOCOM last month. Through the partnership, we can secure a reliable source for comprehensive financial products and services and strong support from BOCOM in order to boost our business development. At the same time, closer ties between the Group and BOCOM can lead to significant synergies. Looking ahead, we will closely monitor the market trend, capture market opportunities in order to continue to achieve outstanding results in the rapidly-growing financing market and generate better returns for 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
Source: Differ Group Holding Company Limited
Sectors: Daily Finance
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