china everbright limited 2017 annual results show steady growth，total fundraising up 48% to about hk$130 billion
- total fundraising surpassed the hk$100 billion mark to hk$129.1 billion, further demonstrating its core competitiveness
- profit attributable to shareholders from fund management and principal investment businesses reached hk$2,862 million
- increase in dividend, with final dividend of hk$0.60 per share, and full-year dividend of hk$0.85 per share
china everbright limited (“cel” or “the group”, stock code: 165.hk) today announced its annual results for the year ended 31 december 2017.
cel maintained a sound development momentum in 2017, with total fundraising topping the hk$100 billion mark to hk$129.1 billion, up 48% when compared with 2016. as a result of its management of a total of 48 funds and its 116 post-investment management projects, cel’s outstanding investment and fund management capabilities have been duly recognized by investors.
in 2017, profit attributable to cel’s equity shareholders amounted to hk$4,148 million, representing a year-on-year increase of 2%. direct operating businesses (the fund management and principal investment businesses) posted a profit of hk$2,862 million, up 4% year-on-year. the board of directors has resolved to declare a final dividend of hk$0.60 per share for the year ended 31 december 2017 (2016: hk$0.50 per share). together with an interim dividend of hk$0.25 per share, the full-year dividend for 2017 is hk$0.85 per share, up 13% over last year.
2017 annual result business review
through its four core competencies, cel’s investment and asset management platform achieved remarkable growth in 2017, realising a complementary “dual-driver” synergy.
maintaining its leading position in china’s private equity industry with its diversified and professional industrial fund platform
- diversified types of funds, including pe funds, secondary market funds, mezzanine funds, fund of funds and the asset management platform have fulfilled the needs of different investors. the group’s 16 industry funds cover real estate, healthcare, infrastructure, new energy, high-tech manufacturing, semi-conductors, tmt, cultural entertainment and other industries focusing on consumption upgrade trends.
- in 2017, cel injected eba investments into shanghai jiabao group, which was renamed as everbright jiabao, underpinning the establishment of its real estate development strategy of “light assets operation and heavy assets investment as dual growth drivers”. as at the end of 2017, the accumulated assets under management was us$140 million in usd funds and rmb 47.1 billion in rmb funds. by the end of 2017, eba investments had 40 projects undermanagement with an aggregate area of over 3.21 million square meters.
- a rapid development in fund of funds and a partnership with china merchants bank to set up the everbright-cmb multi-strategy equity investment fof provided diversified alternative investment solutions.
accelerating investments in the new economy sector by establishing win-win partnerships
- riding on consumption upgrade trends in china, the group grasped the trends and accelerated investments into the new economy sector, forming strategic partnerships with pioneers in various industries. we partnered with idg capital, focus media and walden international to invest in new economy sectors including tmt, cultural and entertainment, consumption upgrade, finance technology and semi-conductor companies.
- invested in various landmark projects in the industry, including mobile video, new energy vehicles, online payments and artificial intelligence. we also invested in iqiyi in the cultural and entertainment sector, mime and mashang consumer finance in financial technology, xiaoi robot in the artificial intelligence sector, and nio and xjet 3d printing in advanced manufacturing.
- established “walden cel global fund i” with walden international, focusing on industry upgrade in relation to semi-conductor and information technology in china.
showcased strong cross-border asset allocation and investment capabilities, enhanced overseas asset allocation
- cel focused on different overseas investment strategies through its cel global investment fund, cel catalyst china israel fund, everbright overseas infrastructure fund and cel haiyin global investment fund. projects invested in included those related to advanced manufacturing, innovative companies, high-tech and infrastructure.
complementarity between principal investments and funds to enhance investment capabilities
- continued to exert its robust principal investment capabilities to fulfil its function as a fund incubator.
- captured arising market opportunities in aircraft leasing and the high-end elderly care industry, and saw remarkable strategic investment returns. by the end of 2017, china aircraft leasing group holdings limited (“calc”) recorded strong growth in its aircraft leasing business, having delivered 107 aircrafts, completed the construction of the only aircraft recycling facility in china in 2017 and became a full value-chain aircraft solutions provider for global airlines. meanwhile, calc sold its aircraft lease receivables to rapidly recover its capital through asset securitization, and gradually transformed as an aircraft asset manager.
- following the acquisition of huichen elderly care in 2017, cel acquired enjoy twilight years with principal capital, which improved the group’s geographical layout in the elderly care industry.
strategy and outlook
by 2018, cel will continue to search for more opportunities to invest in emerging industries, and to expand the investment and scale of the new economy sector; establish diversified and professional industrial fund platforms to speed up its transformation from a financial investor into an industrial integrator; establish a “silk road fund” and a “greater bay area fund”; promote the development of the asset management business with principal capital; continue to develop strategic industry investment projects; and consider transforming investment projects into professional industry funds at the appropriate time.
mr chen shuang, executive director and chief executive officer of china everbright limited, said, “dedicated to continual advancement over two decades, china everbright limited is well recognised in the industry. since its establishment in hong kong in 1997, with the motto of “the power to transform”, cel is dedicated to continual growth and progress, enabling it to become a leading cross-border investment and asset management company in china. in the future, we will continue to grasp the pulse of the market, develop in line with general trends, continue to showcase cel’s strength as a china expert with international perspective, as well as provide a comprehensive and diversified asset management service to local and international investors.”
