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Differ Group Announces 2015 Annual Results; Revenue and Profit Reach New Heights
Revenue Surges by 55.1% and Profit Attributable to Shareholders Increases by 42.2%;
Optimizes the Development Prospects by Building a Comprehensive Financing Platform
HONG KONG, Mar 24, 2016 - (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 annual results for the financial year ended 31 December 2015. Benefitting from the business growth of financial services and asset management services, the Group has once again recorded encouraging results in 2015.
The Group's turnover surged by 55.1% to approximately RMB183,150,000 and profit attributable to shareholders soared by 42.2% to approximately RMB103,788,000. Basic earnings per share amounted to approximately RMB2.56 cents, representing an increase of 39.9%.The growth was mainly attributed to i) the remarkable business growth of financial consultation income from financial services and entrusted loan interest income from express loan services and ii) the gain on disposal of distressed assets of the Group's asset management services.
The Group maintained a healthy financial position with a 22.8% gearing ratio. As at 31 December 2015, it had total cash and bank balances approximately RMB89,510,000.
Mr. Hong Mingxian, Chairman of Differ Group, said, "The year 2015 has been a fruitful year for the Group. Listing on the Main Board of the Hong Kong Stock Exchange has marked another major milestone as the Group shifts to a wider platform with the enhanced corporate image and share liquidity. During the year, the Group recorded satisfactory growth in all its businesses along with enhanced business flexibility. We have made a strategically significant acquisition on Jiashi Group ('Jiashi'), which principally engaged in finance lease business in PRC. The Group can realise synergies and capture the great business opportunities in the finance lease sector in Fujian Province through Jiashi's extensive experience in that business. Riding on our leading position and leveraging our close cooperative relationships with financial institutions and banks, we are well-prepared to capture the enormous business opportunities ahead."
Business Review
Finance Lease Services
The Group further bolstered its finance leasing business by completing the acquisition of Jiashi . Jiashi has a special focus in the agricultural and fishery industries which are strongly supported by the central government. These industries provide a relatively safe loan exposure to the Group especially in current unstable market conditions. As a result, income from this business surged by 90.5% to approximately RMB21,505,000 in 2015. The increase was mainly due to the acquisition of the consolidation of finance lease services income from Jiashi into the Group.
Asset Management Services
The Group commenced its asset management business in January 2015. During the year, five distressed assets have been acquired and two of them have been disposed, therefore the Group recorded a profit of approximately RMB21,000,000.
Express Loan Services
In light of the growth of the PRC economy and strong demand for financing services to SMEs, the Group continued to expand the entrusted loan business and recorded a 29.2% rise in income to approximately RMB50,488,000 in 2015. The increase was mainly due to the increase of outstanding entrusted loan receivables and the total amount of new or renewed entrusted loans granted. Differ Group commenced its Hong Kong money lending business in August 2015 and recorded the income of RMB2,866,000 in relation to such business and from the short-term financing services provided by the Group to customers in PRC.
Financial Services
In view of the tight credit environment in the PRC banking sector, more customers have sought the Group's financial services in assisting them in obtaining financing from PRC banks. As such, the Group has mainly focused on the financial services with customer charges based on a certain percentage of the amount of financing obtained as a result of the consultation. Income from this sector has increased sharply by 52.7% to approximately RMB56,760,000 in 2015. The increase in financial services income was mainly due to the Group's assistance provided to customers in obtaining more financing from banks and peer companies.
Financial Guarantee Services
The tighter credit policy in the PRC has brought opportunities to the Group by meeting SMEs' need for financing. The Group has recorded a rise in revenue by 5.2% to approximately RMB16,561,000 as compared to 2014.
Outlook
The Group has transferred its listing from GEM to the Main Board of the Stock Exchange on 6 July 2015. The Group believes that transferring to the Main Board can strengthen its growth momentum and enhance the Group's corporate image and share liquidity. With the Group's well defined 6 sectors in the financing and financing-related solutions, not only the flexibility of business can be enhanced, but also a clearer positioning and deeper understanding of Differ Group's corporate image can be conveyed to the Group's stakeholders.
In addition, the Group has commenced its asset management business. Looking to the future, the Group will actively seek opportunities to acquire value asset, in order to fully open up the huge business potential.
With the unique geographical advantage, the Group is confident that the finance leasing business in the Fujian Province, the PRC will be developed rapidly. The launch of the free-trade zone in Fujian and with the issue of policies on "One Belt One Road" and the National 13th Five-Year Plan will lead to substantial business opportunities in the finance lease industry. The Group will actively grasp the opportunities to expand its financing leasing to cover more industries to the distant marine fisheries, tourism, agricultural drones industries and consumer financing. The Acquisition of Jiashi in the year will help the Group to leverage its overall loan portfolio in the future so as to consolidate the Group's advantages in the industry.
Mr. Hung concluded, "The Group adopted a flexible and robust business model which can easily and swiftly adapt to the fast changing economic environment which is becoming more visible in the PRC today. The change in the PRC economy and policy will bring about challenges as well as opportunities to SMEs. Differ Group has been well equipped to assist its customers to capture these opportunities and face these challenges. We continued to be optimistic on our overall business and financial prospects in future."
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
Jenny Lam +852 2864 4883 jennysy.lam@sprg.com.hk
Fax: +852 2804 2789 / +852 2527 1196
Source: Differ Group Holding Company Limited
Sectors: Daily Finance, Daily News
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