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Gratifying Growth! Far East Horizon realized a net profit of 1.619 billion yuan in the first half of 2017

Source:FAR EAST HORIZON CreateTime:2017-08-24

August 23, 2017, Far East Horizon Limited (03360.HK) held its interim results announcement 2017 in Hong Kong, publishing its interim results for the six months ended 30 June 2017. 

Kong Fanxing, Chief Executive Officer, Wang Mingzhe, Chief Financial Officer, Shang Bing, Vice President, Wu Zhijun, Vice President, and Cai Jianjun, Chief Information Officer attended the conference and answered questions from investors. 


Adhering to "financial + industry", and maintaining steady growth 

In the first half of 2017, China's macroeconomic situation was stable and favorable. In line with the economic and industrial restructuring trend in China, Far East Horizon has always stayed highly vigilant towards the changes in the external environment. Taking advantage of the trend, Far East Horizon will stick to strategic upgrading direction, continue to with innovative operations, and make all efforts to implement "integrated services" and operate the business in an "investment banking mode". 

Relying on China's real economy, Far East Horizon has adhered to the "financial + industry" business philosophy, and thus the overall growth has been healthy and stable. In the first half of 2017, its total revenue reached 8.972 billion yuan (RMB, same below), 23.23% up over the same period of last year. Net profit of ordinary shareholders reached 1.619 billion yuan, with an increase of 12.47%. As of June 30, 2017, the Company's assets amounted to 197 billion yuan, accounting for an increase of 18.27% over the beginning of the year. 

Continuous management optimization to protect the safety of assets

As long as the steady growth, Far East Horizon has strictly controlled credit lines for high-risk industries, high-risk assets, and other high-risk regional businesses with a fast growth rate. At the same time, it has further promoted the construction of a regional asset management system and enhanced the effect of asset disposal and management. For stock risk assets, the Company has accelerated the progress and efficiency of asset disposal. The non-performing assets have stabilized and tended to a good prospect. 


Give play to synergies advantages, and enhance the content value

In the first half of 2017, Far East Horizon continued to give full play to the differentiated advantages of mutual synergy and superposition of industrial and financial businesses. It has accelerated the three key industries in medical treatment and health, construction and education, to promote the growth of financial services, and gradually build up a comprehensive industrial operation system. 

On the medical side, Far East Horizon has continued to invest and acquired quality hospitals across the country. As of June 30, 2017, it had invested in or controlled a total of 26 hospitals with over 10,000 open beds, covering East China, South China, North China, Southwest China, Northeast China and other regions of the national hospital network. In the meanwhile, the Company has consolidated internal medical resources and strengthened synergies to form a benign interaction between invested hospitals and to enhance the overall medical skills and operational efficiency.

Far East Horizon will return to the essence of medical treatment, focus on a scientific development and construction, increase the core competitiveness of the hospitals, and strive to build a medical group under the operational vision of "one network, one system and one hospital".  

It has gained the initial success in construction industry resources integration and the entire industrial chain layout, mainly engaged in equipment operations management and construction services. It possesses 6296 aerial work platforms, 260,000 tons of supporting materials for foundation pit, 224 road construction equipments and 37MW power equipment, which avails it a leading position in all the above construction equipment segments. As one of the largest new-type mold support system suppliers in China, Hongjin has 250,000 cubic meters of aluminum alloy templates and 280,000 tons of new scaffolds. Its production, operation and maintenance capabilities have formed a differentiated competitive advantage in their respective sectors. 

Continue to promote K12 consistent high-end education layout. In the first half of the year, with the opening of the kindergarten in Chongqing, there are currently 5 kindergartens in operation and 13 contracted venues for future construction. Thus, an operating pattern has come to being covering seven major cities in China. The two invested high schools show continuous increase in their quality and operation. 

Far East Horizon will continue to speed up the layout of the education industry, enhance service connotation, and gradually establish the most unique private education system with a brand reputation and strong services. 

Strengthen the financing advantages and ensure a steady operation 

Facing the tight funds in the first half of the year, Far East Horizon has predicted the situation, responded proactively, stepped up its operations, deepened the cooperation with various financial institutions, and actively expanded its financing channels. 


As the only financial leasing company in China that has been independently rated "investment grade" by two international authorities, it has continued to strengthen its issuance of financing products such as bonds and asset securitizations. In the first half of the year, it started to further expand its non-banking quota and restart its overseas financing market, to fully protect its financial resources needed for the operation.

Future prospects: adhere to "finance + industry" strategy  

In the aspect of financial business, Far East Horizon will dynamically adjust and optimize the industry configuration of assets according to the characteristics of the new economic cycle so as to ensure an operational safety. At the same time, relying on and exerting the accumulated innovation in the capital and industrial sectors of the Group, it will meet customers financial needs from multi dimensions in the real economy with its integrated services" and business operation in an "investment banking mode

Speaking of the industrial operation, it will base itself on the profound industrial experience and the clientele formed over the years, focus on the three major industries of health care, construction and education, speed up the overall operation layout of hospital investment and operation, equipment operation services and high-end education, build an organic collaborative management system, strive to form a virtuous circle, and promote the business toward a healthy and stable direction. 

Mr. Kong Fanxing, Vice Chairman and Chief Executive Officer, stated that Far East Horizon would continue to take root in the industrial route and adhere to the development strategy of "finance + industry". Focusing on the real economy, Far East Horizon will exert its strength in industrial specialist, depth and large clientele, continuously upgrade its service capabilities and methods, and work hard to realize the corporate vision of "bringing global resources together and boosting Chinese industries".