china everbright limited announces 2017 interim results | china everbright limited-九游会登录

 
china everbright limited (“cel” or “the group”, stock code: 165.hk) today announced its interim results for the six months ended 30 june 2017.
 
in the first half of 2017, cel’s direct operating businesses (fund management and principal investment) posted a profit of hk$987 million, up 73% year on year. profit contribution from everbright securities dropped 34% to hk$346 million. china everbright bank contributed a dividend income after tax of hk$157 million, down 50% compared to the same period last year. profit attributable to cel’s equity shareholders amounted to hk$1.49 billion, representing a year-on-year increase of 5.6%.
 
gradual improvements in standards and regulations for china's financial market systems helped cel achieve breakthroughs in fundraising scale and project investment size, among other aspects. the group’s total fundraising scale broke the hk$100 billion mark, growing 22% from the end of 2016 to reach hk$106.6 billion.
 
during the reporting period, cel and china merchants bank jointly set up the rmb 5 billion everbright-cmb multi-strategy equity investment fund. the cooperative venture brings together cel’s diverse fund platforms and china merchants bank’s strong capital resources and asset management experience.
 
cel is committed to an investment philosophy focusing on the integration of industry and finance and growing industry capital. during the reporting period, cel acquired an equity interest in shanghai jiabao (sh: 600622) by raising its stake in the company to 24.33%, and the group remained the single largest shareholder of china aircraft leasing group holdings limited (“calc”).
 
the board of directors has resolved to declare an interim dividend of hk$0.25 per share for the six months ended 30 june 2017 (1h 2016: hk$0.25 per share), same as the interim dividend of last year.
 
business review
 
fund management business
 
as at 30 june 2017, cel’s fund management business had broken the hk$100 billion fundraising mark to reach hk$106.6 billion, up 22% from the end of 2016 and marking a new stage of development for the segment. of the total amount raised, external funds accounted for 78%. cel currently manages 38 funds with 96 post-investment management projects.
 
cel is currently among china’s top private equity firms in the primary market. investors include joint-stock commercial banks, corporations, investment companies, trusts and asset managers, providing increasingly solid and diversified sources of funding. during the reporting period, cel secured investments from iqiyi, nextev, mi-me and leading companies in other fields, venturing into mobile video, new energy cars, online payment and other sectors. it also helped mls complete the cross-border acquisition of germany-based osram’s lighting business and assisted idg capital in the acquisition of international data group (idg), a us-based media company.
 
as at 30 june 2017, cel secondary market managed a total of 16 funds and accounts with aum of hk$12.4 billion, up 15% from last year.
 
during the period under review, eba investments focused on post-investment management with continued efforts to upgrade, transform, develop and operate its holding properties (including but not limited to commercial malls, office buildings, park properties and others) to boost rental income and enhance the value of its assets. as an asset manager, eba investments exports its “imix” brand and charges management fees. as at june 2017, eba managed over 800,000 square metres of commercial property under imix, covering several tier-one and tier-two cities in china.
 
new energy funds and medical and healthcare fund contributed to the listing of hengrun heavy industries on the shanghai stock exchange and bgi genomics on the shenzhen stock exchange. during the reporting period, the group divested projects through m&a and bulk transactions.
 
principal investment business
 
cel focuses its capital resources on four areas of deployment, providing strategic differentiation for the group’s business development. as at 30 june 2017, cel’s principal investment business was valued at hk$22.7 billion. the group posted pre-tax profit of hk$1,193 million, representing an 89% increase year on year.
 
as at july 2017, cel had issued onshore panda bonds totalling rmb 10.5 billion, bringing long-term and low-cost capital to the group while optimising the asset-liability structure of usd and rmb.
 
during the reporting period, cel remained the single largest shareholder of calc, holding a 33.6% equity interest and sharing in a hk$84 million profit contribution. the group employed systematic industry-finance integration to help calc acquire 100% of universal asset management (“uam”), a world-leading provider of global aviation solutions. the group also helped calc complete an agreement to purchase 50 new boeing 737 max airplanes, contributing to the sale of finance lease receivables as part of its recurrent business. these efforts have contributed to calc’s on-going transformation from a leading aircraft leasing company in china to an important participant in the global aviation industry value chain.
 
 
other development highlights
 
in the first half of 2017, cel won a host of market accolades, including ‘the most competitive venture capital firm’ and ‘best exit case’ at the 2017 china venture capital golden eagle awards, where chief executive officer mr chen shuang was also named ‘outstanding venture capitalist’. in addition, eba investments topped the ‘top 10 chinese real estate funds’ for the third consecutive year, and eba investments’ imix brand was named one of the ‘top 10 brands of china commercial real estate companies in 2016’.
 
strategy and outlook
 
the group said there will be general signs of growing optimism in the financial market in the second half of 2017, but added that a host of uncertainties may impact asset prices. these include effects on global liquidity resulting from the federal reserve’s tapering move to raise interest rates; the european central bank’s probable announcement to cut back on its qe programme; pressure faced by the bank of japan to tighten monetary policy; and the potential drag on asset prices caused by china’s monetary and credit tightening.
 
mr chen shuang, executive director and chief executive officer of china everbright limited, said, “these macroeconomic uncertainties will continue to drive demand for asset management expertise and the trend toward differentiation that is already underway in the industry. quality asset managers with proven track records and strong integrated capabilities stand to benefit from the growing opportunities accorded by these developments. as a leading asset management and investment company, cel will focus on expanding the coverage of its fund products while striving to build a closed-loop ecosystem by developing its full-value-chain capabilities in sectors where it is committed to building a deep presence. at the same time, the group will work to strengthen its platform, building an unsurpassed suite of core competences and growing its fund management business.”
 
the group, which is celebrating its 20^th anniversary this year, also said it will continue to advance its “global vision, china insight, hong kong base” proposition to generate sustainable growth for shareholders and investors.


(from left) mr richard tang, executive director & chief financial officer; mr chen shuang, executive director & chief executive officer; and mr frederick tsang, chief risk officer.