everbright announces 2013 interim results
|
performance highlights (as of 30 june 2013):
|
29 august 2013, china everbright limited (“everbright” or “the group”, hkse code: 00165.hk) today announced its interim results for the six months ended 30 june 2013.
everbright said, “we have succeeded in building a solid cross-border macro asset management business model by restructuring our business and making strategic enhancements to our investment teams. also, our fundraising and asset management projects continue to expand, while our operations continue to make steady progress. our primary market investment business, comprising private equity, venture capital and sector focus funds, remains the key profit contributor. our secondary market investment business diversified its asset management product offerings and we optimised our asset management portfolio. the structured investment and financing business provides enterprises a crucial financing channel to accommodate their growth, and we also continued to explore various short- to mid-term ‘financing investment’ business opportunities. meanwhile, our aircraft leasing business recorded steady growth, and we are pleased with its healthy operations.”
as at 30 june 2013, the group had 15 funds under its cross-border macro asset management platform. total funds raised increased to over hk$25.2 billion, while the sum of uninvested capital and fair value of invested projects amounted to approximately hk$26 billion, representing increases of 9.7% and 9% respectively compared to the end of last year.
in the first half of 2013, the group’s primary market investment business added 10 investment projects, bringing the total number of projects to 59 with fund raised increased to hk$22 billion and some divestments were made at appropriate times. the four sector focus funds, namely everbright macquarie infrastructure fund, everbright ashmore real estate fund, new energy (low carbon) fund and medical fund, and some of them captured the market opportunities and expanded the rmb fund business on top of the usd-denominated funds. during the first half of 2013, the business reported profit before tax of hk$205 million, representing a year-on-year increase of 17%.
the secondary market investment business – which comprises fixed income products and global hedging products – is still under development stage. during the first half of 2013, it posted a loss of hk$27 million. within fixed income products, the solid performance of everbright’s rmb 1 billion qdii greater china bond trust led the group to launch fundraising for its usd-denominated qdii bond trust. in the first half of the year, the team successfully established the everbright dynamic bond fund in hong kong, raising a total of us$30 million. moreover, everbright was granted a qfii license by the china securities regulatory commission and a us$100 million investment quota by the state administration of foreign exchange. in global hedging products, the group launched two absolute return funds in july last year. they have developed an established system and will start fundraising exercise at the appropriate time. the group will continue to launch absolute return funds of other types to further diversify its cross-border asset management product offerings.
for the structured financing and investment business, the group continued to explore short- to mid-term “investment financing” business opportunities to support the growth of its china business. it also participated in the privatisation of focus media. the average internal rate of return for everbright’s divestments from two recent investment projects in the first half of the year exceeded 20%. interest and consulting income was hk$204 million, together with investment income of hk$48 million, resulting in total pre-tax profit of hk$215 million. the group also began fundraising for a usd-denominated mezzanine fund modeled on its first rmb-denominated mezzanine fund.
china aircraft leasing company limited posted steady growth for the group’s aircraft leasing business and contributed hk$23 million in profit. as at 30 june 2013, the group had 18 aircrafts in operation.
everbright securities posted a profit of hk$339 million in the first half. in accordance with hong kong financial reporting standards and everbright’s internal accounting procedures, the group made necessary adjustments to the profit contributed of everbright securities by hk$77 million on the various investments held by it to hk$260 million, representing a year-on-year increase of 76%.
outlook
everbright strives to maintain steady growth in its business expansion. driven by its value investment approach, the group aims to maintain the strong track records of its primary market investments. it will also leverage its macro asset management platform, opportunities arising from the development of hong kong as an offshore renminbi centre, as well as its qualifications in qfii, qdii and qflp to diversify its product offerings in fixed income, absolute return funds, mezzanine funds and other financial products. at the same time, it will continue to utilise its healthy gearing level to seek overseas merger and acquisition opportunities. it is committed to maintain a healthy investment and divestment pipeline to achieve stable growth in the investment and management fee income.
