group's profit of 2007 amounted to hk$5.01 billion, another record high.
業務發展 2008/03/27
everbright announces annual results for fy2007
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profit increases 469% to hk$5.01 billion
final dividend of 10 hk cents per share
- significant growth in hong kong business resulting from the adjustment of business strategies. profit after tax from hong kong business reached hk$1.32 billion, representing an increase of 146% year-on-year
- associate company everbright securities recorded significant boost in revenue, contributing to hk$2.03 billion to the group’s profit
- major progress in everbright bank’s restructuring led to significant write-back of provision of hk$3.76 billion, of which hk$1.57 billion was booked to the profit and loss account for 2007
- profits reached a record high as a result of favourable market conditions in mainland china and hong kong. profit attributable to shareholders amounted to hk$5.01 billion, a substantial increase of 469% compared with the last fiscal year
- the board of directors proposes a final dividend of 10 hk cents per share
china everbright limited (“everbright” or the “group”; stock code: 165) today announced its annual results for the year ended 31st december 2007. the group’s profit after tax and minority interests for the year amounted to hk$5.01 billion, a substantial increase of 469% when compared with last year. shareholders’ equity amounted to hk$16.4 billion, representing an increase of 156%.
operations review
during the year, the group recorded significant growth in its hong kong business. apart from strategic investments, profit from hong kong operations (including direct investment, asset management, securities brokerage and investment banking) amounted to hk$1.52 billion, representing an increase of 156% compared with last year. profit after tax of the hong kong business (excluding non-operating factors such as properties revaluation) was hk$1.32 billion, representing an increase of 146% compared with last year. income-to-cost ratio remained sound at 26.9% (fy2006: 40.8%) and average return on shareholders’ equity was 44% (fy2006: 15.7%). as at 31st december 2007, total assets of the group amounted to approximately hk$20.3 billion, with cash on hand of approximately hk$1.8 billion. apart from trade liabilities in the ordinary course of business, the group has no material liabilities at present.
during the year, the “china special opportunity fund i”, which was established by the group’s direct investment division, was fully invested and began reaping benefits from the listing of investee companies, including china high speed transmission (658.hk), sunshine paper (2002.hk) on the main board of the hong kong stock exchange and goldwind science and technology (002202.ch) on the shenzhen stock exchange (a shares). the “china special opportunity fund ii” started investing in certain projects in mainland china involving the development of financial data processing platforms. the setting up of a venture capital fund together with zhongguancun, beijing （北京中關村）, was completed during the year and the joint venture has already begun to make investments.
total assets under management of the asset management division amounted to hk$1.4 billion as at the year-end. the group's hedge fund “china everbright dragon fund” reported an annual return of 50.3%. during the year, the group expanded the scope of its asset management business by setting up managed funds for individual high-net-worth clients. the returns of these investments funds have been satisfactory.
the securities brokerage division responded to increasing competition in the marketplace by continuously improving its service standards and introducing wealth management services. new branches were opened in north point and whampoa, hung hom in 2007 and early 2008 respectively, to provide a wider array of services to customers. the investment banking divisioncompleted an ipo sponsorship assignment in respect of the listing of shenzhen hong long properties（深圳鴻隆地産）and grew its business in private equity financing, financial advisory and underwriting of new shares.
during the year, the group launched a rebranding of the company and rolled out a new logo to enhance its corporate image and market value. the group has a clear brand positioning of “making wealth simple”, striving to provide its customers with simple, professional and practical solutions, offering them trustworthy partnerships and helping them to build wealth with ease.
taking full advantage of the favourable market conditions, everbright securities, 39.31% owned by the group, achieved a considerable increase in its revenue from its brokerage service and securities investment. for the year ended 31 december 2007, everbright securities recorded a profit of rmb5.0 billion, contributing hk$2.03 billion to the group’s profit. in january 2008, everbright securities was granted the qualified domestic institutional investor (qdii) status, putting it in an excellent position for overseas business development.
everbright bank, held 6.23% by the group, received a capital injection of us dollar funds equivalent to rmb20 billion from central huijin investment co., ltd. as a result of this substantial recovery of shareholders’ equity in everbright bank, the fair value of the group’s investment in everbright bank, which had been written down to nil at the end of 2004, was revalued at hk$3.76 billion as at the end of 2007. preparations for everbright bank and everbright securities’ a-share listing in mainland china are well underway.
outlook
everbright said, “in 2008, global financial markets are expected to witness more uncertainty. the rapid economic expansion in mainland china could slow down slightly. nevertheless, the group remains highly optimistic about its hong kong business given its strong position as a leading provider of cross-border financial services in mainland china and hong kong. going forward, we will focus on developing direct investments, asset management and industry-specific investments, while at the same time growing our fee-based business comprising investment banking (corporate finance) and securities brokerage (wealth management). our goal is to expand the hong kong business so that it contributes half of the group’s net profits within three years.”
the group will also continue to strengthen cooperation with everbright securities. it will continue to build its cross-border business platform with a view to increasing its market share in hong kong. in response to market volatility, the group will tighten its internal risk control and enhance its corporate image, and to increase the market value of the company.
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about china everbright limited
china everbright limited (“everbright”; stock code: 165) is a holding company listed in hong kong which offers diversified financial services across hong kong and mainland china. it is a member of the china everbright group. established in 1997, the group fully leverages its position as a leading provider of cross-border financial services in mainland china and hong kong with its prudent operation and financial strength. everbright focuses on developing direct investments, asset management and industry-specific investments, while at the same time growing the fee-based business comprising investment banking (corporate finance) and securities brokerage (wealth management). over the past decade, the company has established solid market foundation in different service areas, and has set up branch offices in shenzhen and beijing. at the end of 2007, the group had a market capitalization of hk$39.2 billion.
the company’s associate company - everbright securities company limited (“everbright securities”) - is one of the top ten securities brokers in china. in 2004, everbright securities was appointed as one of the three designated pilot trial securities brokers by the china securities regulatory commission. its risk management level was rated category a and level a by regulatory bodies. as at the end of 2007, everbright securities had a network of 76 operation units and 18 securities services offices across 23 provinces, municipal cities and autonomous regions in china.
leveraging the company’s strengths, together with the parent company’s and associate company’s leading position and influences in china’s financial industry, everbright has successfully developed extensive people and business networks, giving it strong competitive advantages in providing cross-border financial services in hong kong and china. everbright has a clear branding positioning as “making wealth simple”. operating in a pragmatic and innovative corporate culture, the group is dedicated to providing proactive, simple, professional and practical solutions. it knows how to satisfy customers’ needs and foster trusted partnerships through its commitment to mutual growth. website of everbright:
the announcement of results for the year ended 31st december 2007 is available at the official website of the
company (九游会登录-九游会登陆) for reference.
