everbright announces 2012 interim results
业务发展 2012/08/21
| press release |
21 august 2012
everbright announces 2012 interim results
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hong kong operations continues to be major profit contributor
with hk$840 million profit in the first half of 2012
fund investments and management business under the “macro asset management”
structure sustains healthy growth
performance highlights
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operating income increased 23% to hk$533 million
hong kong operations remains the major profit contributor, 1h 2012 profit before tax
amounted to hk$843 million, up 16.6% pop
the restructured “3 2 macro asset management” business sustained healthy growth
- “primary market investment” business reports pre-tax profit at hk$176 million
- “secondary market investment” business reports a loss of hk$11.92 million
- “structured investment and financing” business pre-tax profit at hk$360 million
“structured investment and financing” business has become hong kong business’
growth engine
earnings per share hk$0.446, down 26% pop
board of directors recommends an interim dividend of hk$0.11 per share
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china everbright limited (“everbright” or “the group”, hkse code: 00165.hk) today announced its interim results for the six months ended 30 june 2012.
the group’s operating income surged by 23% to hk$533 million. due to the increase in management fee and dividend income as well as better return on investment, the profit before tax of the hong kong operations recorded a 16.6% increase to hk$843 million for the first half of the year. earnings per share slipped 26% to hk$0.446 (1h 2011: hk$0.604 – continued operations). the board of directors recommended an interim dividend of hk$0.11 per share (1h 2011: hk$0.15). net asset value per share at hk$16.58.
as of 30 june 2012, the group maintained a strong financial position, with cash on hand of hk$3.04 billion and a very low level of interest bearing liabilities divided by shareholders equity of 2.6%.
everbright said, “in order to accommodate with the needs of the regional economy and the group’s organic development, we have made appropriate adjustments in the “3 2” business structure during the first half of the year, while keeping its macro asset management strategy unchanged. this adjustment aimed to bring a clearer picture of the group’s business structure, which helps us to optimally concentrate the resources and comparable advantage of each business segments, so as to realize a healthy growth in the long run. the direct investment, asset investment and asset management divisions under “3” were realigned into three main segments: primary market investment, secondary market investment and structured investment and financing; while “2”, namely, hong kong’s investment banking, and the brokerage and wealth management divisions, remained unchanged and continued to capitalise on its associate company everbright securities’ advantageous position in the cross-border fee-based business.
for the first half of the year, there were 10 funds under the macro asset management business of the group, assets under management amounting to hk$19.2 billion. all the investment projects and investment funds thrived well and our investment teams had taken a cautious investment approach and closely monitored market moves for investment and exit opportunities.”
“3” fund investment and management operations
the primary market investment business consists of sof series of three private equity funds, three venture capital funds and three sector focus funds covering infrastructure, real estate and new energy. the primary market investment business has become the most competitive business segment within everbright. currently, it has 40 investment projects with an aggregate assets under management amounting to hk$19.1 billion. in response to the slowdown of economic growth in china, various investment teams took prudent investment approaches and hence added five new investments and divested a few projects. as a result, the primary market investment business reported earnings before tax of hk$176 million, representing a decrease of 60% as compared with that for the same period last year.
the secondary market investment business is focused on the investment opportunities of listed securities with the aim of offering clients more options for a flexible asset allocation, in addition to investment business in the primary market. during the first half of the year, everbright restructured its secondary market funds and discontinued the operation of the dragon fund. the group also adjusted the investment portfolio comprising hong kong shares and a-shares with the support of its seed capital, and obtained the approval from the china banking regulatory commission on its qdii trust scheme for bond investments in the greater china region, and fundraising is currently underway. in addition, in order to take advantage of international investment banks reducing the scale of proprietary investments, everbright engaged a number of management teams for absolute return funds with proven track records and reputation in the markets and completed the establishment of a brand new absolute return fund platform and a corresponding it system. in july, the group launched two fund products designed to generate absolute returns under various market conditions and commenced to make pilot investments, further enhancing the offerings of secondary market investment products and attracting external investors. during the first half of 2012, the business of secondary market investments recorded a loss of hk$11.92 million for the period; as the business still suffered from the unfavourable global economy and the eurozone debt crisis.
the structured investment and financing business continued to explore business opportunities for “investments financing” with the support of the abundant financial resources of everbright and the extensive business channels in the field of primary and secondary market investments. leveraging its experience in this line of business during the past two years, the group is initiating a domestic mezzanine fund and an overseas mezzanine fund to diversify the investment risks andfurther enhance the offerings of asset management products of everbright. both funds have received favorable response from a number of institutional investors. during the period, the division remained the profit growth driver of the group as it generated interest income of hk$112 million, investment income of hk$346 million and total profit before tax of hk$360 million. china aircraft leasing company limited (calc), which was acquired by the group last year, operated well, bringing the group satisfactory profits. pursuant to the reporting period, calc had purchased 36 new a320 airbuses from airbus s.a.s in july and continued to expand its scale of operations.
“2” fee-based operations (everbright securities (international))
in may 2011, the group transferred a 51% stake of everbright securities (international), which comprised hong kong brokerage, wealth management and investment banking divisions to its associated company, everbright securities. the group continued to assist everbright securities (international) in the integration of its fee-based businesses platform in china and hong kong. as affected by the drop in transaction volume resulting from the weakening stock markets of both china and hong kong during the first half of the year, everbright securities (international) saw a significant decrease in revenues from brokerage commission, ipo sponsorship and underwriting, representing a loss attributable to the group of approximately hk$8.50 million.
outlook
facing all the market challenges and uncertainties, everbright will maintain its strategy of “progressing with prudence” while remaining committed to developing its “macro asset management” business. the group will also further optimize and expand its primary and secondary market funds as well as the structured investment and financing business, with the aim of achieving stable profit growth for its hong kong operations. at the same time, the group will continue to expand the size of its assets under management, divest some of its mature projects when opportunities arise, make appropriate project investments in a prudent manner, maintain stable growth of the structured investment and financing business, and strive to achieve breakthroughs in the expansion of various business platforms, so as to deliver continuous and stable returns from investments to its shareholders.
“the chance of the global economy regaining its rapid growth is slim despite various measures being taken by every country. to maintain its resilience to risks brought about by the domino effect in the financial markets, we have to adhere to our approach of value investment and prudent financial policies to ensure that we have excellent risk managementcapabilities to overcome these challenges. this is a time of opportunity for us. it offers usopportunities to acquire projects with long-term growth potential.”
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the announcement of the interim results ended 30 june 2012 is available on the official website ofthe company (九游会登录-九游会登陆) for reference.
