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China Success Finance's 2015 Interim Profit Soars 132.5%
Propelling for Upgrade and Transformation;
Actively Explores Development Opportunities of Internet Finance
HONG KONG, Sep 01, 2015 - (ACN Newswire) - China Success Finance Group Holdings Limited ([Success Finance]or[the Group]; Stock code: 3623.HK), China's first Hong Kong-listed non-state-owned investment and financial service provider for small- and medium-size enterprises ([SMEs]), announced its unaudited interim results for the six months ended 30 June 2015.
In the first half of 2015, strong revenue contribution was generated by the Group's new financial service business owing to its sound transformation strategy. Consequently, the Group recorded revenue of RMB40.67 million during the period, representing a strong year-on-year rise of 53.5%. Profit for the period surged by 132.5% to RMB16.03 million. Basic earnings per share doubled to RMB0.04 from the same period last year.
Mr. Zhang Tiewei, Chairman & Executive Director of Success Finance, said: "Success Finance has sought to transform its business model after listing. We have diversified into financial consultancy, financial leasing and equity investment businesses by building on the existing financial guarantee and small loans lending businesses. In the first half of the year, the Group achieved remarkable business results, which strongly demonstrated the vision of our management and effective execution of our shrewd transformation strategy. A series of guideline policies for the financial services industry introduced by the Chinese government during the period have also spurred the further release of pent-up demand. We believe that the Group will continue to be a beneficiary of these policies based on its solid business foundation and through stringent risk control."
Steady Development of Four Core Businesses
Financial consultancy service
The financial consultancy service business is a new revenue growth driver for the Group. The Group has strengthened the active assets management and consultancy services since last year and obtained good results. In the first half of 2015, the Group's revenue generated from financial consultancy services was approximately RMB17.0 million, representing an increase of approximately 269.6% year-on-year and accounting for about 40.5% the Group's total revenue. With the gradual refinement of the industry chain of its integrated financial services, the financial consultancy service will become a powerful tool which will contribute to the increase in revenue of the Group as a whole and enhance the loyalty of its customers.
Financial leasing services
Revenue from financial leasing services was mainly generated from the rental fees charged by the Group in providing financial leasing services to customers. In the first half of 2015, this revenue was approximately RMB10.2 million, representing around 24.3% of the Group's total revenue. The financial leasing service business is another business model which grew rapidly since the second half of 2014 and contributed significant revenue to the Group.
The Group's financial leasing services have formally commenced independent operation since July 2014 achieving substantial progress in business positioning, expansion of scale and product innovation. Business expansion efforts here have targeted the customers in the home furnishing industry, the elevator industry, the construction industry and the road construction industry. During the period, the Group has launched its "Leasing Usufruct" product through a domestic Internet financial platform to sell this product to customers who have investment demands. The product helps the Group optimise resources allocation and reasonably diversify its risks. Success Financial Leasing is solidly established in the Group's debt business line and has become its new growth point.
Finance guarantee business
In the first half of 2015, the total maximum financial guarantees issued by the Group were approximately RMB730 million. The Group's revenue from the financial guarantee business was approximately RMB12.6 million, which accounted for 30.0% of the total revenue, representing a decrease of approximately 37.0%. The decrease in revenue was mainly due to the overall downturn of the financial guarantee services industry as the scale of credit was restricted during the adjustment period of the PRC macroeconomy. However, with a tightening of risk control, the Group maintained its industry-leadership position as well as a stable guarantee maturity structure. Thus due to its effective risk warning and management mechanism, Success Finance Guarantee weathered the market crash, standing out as one of the top ten regional guarantee companies.
The financial guarantee business entered into a critical period of transformation in the first half of 2015. The Group has introduced strategic business partners to its business, actively expanded the scope of its markets, successfully developed new products, and created new business growth drivers. During the period, the Group has launched the "fixed investment bonds" products in collaboration with Guangdong Financing Re-Guarantee Company Limited and Guangzhou Financial Assets Exchange. The product has not only broadened financing channels for enterprises, but also presented a new means to access financing for Success Finance Guarantee.
Non-financial guarantee business
Revenue from the Group's non-financial guarantee services was mainly generated from service fees charged for providing customers with performance guarantees in relation to the performance of payment obligations and litigation guarantees. For the first half of 2015, the Group's revenue generated from non-financial guarantee services decreased by 52.6% to approximately RMB0.9 million, accounting for approximately 2.1% of the Group's total revenue.
Continues to upgrade strategies in the future
Along with the continuous liberalisation of the financial market in China, the institutional supervision over China's financial market, marketisation of financial systems and the privatisation and diversification of the main entities of financial trading will provide greater scope for nationwide industry development. In addition, the emerging technologies such as the mobile Internet and big data have also provided a more solid foothold for executing the Group's upgrade in strategy.
As a regional leading integrated financial services provider, the Group will focus on the implementation of branding placement strategy as the next step in its strategy. It will ride on its good industry reputation, more mature management model and improved risk control system to implement and apply its model and philosophy through collaborating with leading entities in the industry across different regions. This will help the Group rapidly expand its brand across the country with Success Guarantee at the forefront. In July 2015, the Group has entered into an acquisition framework agreement with Shandong Yinlian as a means to expand its business to Shandong, Beijing and Tianjin.
On the other hand, the Group will actively engage in cooperation with all parties and strive to build an industry chain for integrated financial services. The Group is currently exploring development opportunities in the internet financing field, aiming to provide customers with comprehensive, professional, strict and prudent financial services through a more convenient, socially beneficial and effective platform. Apart from securing a license for Internet financing, the Group also intends to obtain related licenses for the rapidly emerging crowd-funding and third party payment services.
The Group possesses unique advantages in the integrated financial services industry. In addition to its own solid business foundation, its major shareholder also boasts comprehensive financial services assets including internet financing, equity exchange, data center, futures trading, insurance brokerages, gold bullion sales and wealth management, offering strong support for the Group's expansion and development. Looking ahead, the Group is building an industry chain for integrated financial services covering a range of business types and product models to fully connect with funding providers and assets holders and form an integration-centric and inclusive financial services platform with growth potential and high value-added.
Mr. Zhang concluded, "Looking ahead, we remain confident in China's policies and the development of the financial industry. We expect that the guarantee business will mainly be in the form of credit enhancement in the professional field, and the Group will maintain the strong development momentum of financial leasing while excelling in professional financial consultancy to realise organic growth in its traditional businesses. For new businesses, we will strive to expand our two major specialties of debt and equity and concentrate our efforts in building a financial ecosystem focusing on specific market tiers."
Contact:Strategic Financial Relations (China) Limited
Ms. Karen Hung Tel: (852) 2864 4845 karen.hung@sprg.com.hk
Ms. Winnie Lau Tel: (852) 2864 4876 winnie.lau@sprg.com.hk
Ms. Brandi Mo Tel: (852) 2114 4941 brandi.mo@sprg.com.hk
Ms. Angel Li Tel: (852) 2114 4954 angel.li@sprg.com.hk
Ms. Mavis Wu Tel: (852) 2864 4899 mavis.wu@sprg.com.hk
Source: China Success Finance Group Holdings Limited
Sectors: Daily Finance
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