SUN HUNG KAI & CO. LIMITED Hong Kong, 17 March, 2016 - Sun Hung Kai & Co. Limited (SEHK: 86) (the "Company", together with its subsidiaries, the "Group") announced that its profit attributable to owners of the Company amounted to HK$3,896.5 million for the year ended 31 December 2015 (2014: HK$1,328.4 million).
The profit included an approximately HK$3 billion profit from the sale of the Group's 70% equity interest in Sun Hung Kai Financial Group Limited to a wholly-owned subsidiary of Everbright Securities Company Limited (SSE: 601788).
Earnings per share was HK173.8 cents and the Board has declared a second interim dividend of HK14 cents per share. Together with the first interim dividend of HK12 cents, the total dividend for the year is HK26 cents (2014: HK26 cents). The book value per share increased approximately 23% to HK$8.1 at the end of 2015.
Group Executive Chairman Mr LEE Seng Huang said, "The past year was an important milestone where we crystallised a significant release of value from one of our businesses; at the same time, it was also an opportunity for us to reposition ourselves for future growth."
The Group aims to achieve long-term capital growth from the synergies between its investment and finance businesses. Principal Investments has become a more significant segment of the Group, making a pre-tax profit of HK$469.9 million (2014: HK$229.2 million), equivalent to a 10.6% return on the average assets employed for the segment, a solid performance for the year given the weakness across many asset classes. During the year, new investments were made in the financial and pharmaceutical sectors.
Our portfolio of finance businesses is intended to generate regular income for the Group. At the end of 2015, total loans outstanding amounted to HK$12 billion, which generated interest income of over HK$4 billion across a diverse portfolio of loans to individuals, small businesses and corporates.
The Hong Kong Consumer Finance business conducted through United Asia Finance Limited ("UAF") delivered solid results with an increased market share.
However, UAF faced considerable challenges in Mainland China, with a slowing economy and worsening credit environment. The management has revised operational and credit strategies to reduce overall risk and realign our cost structure to the current economic environment. While this period is challenging, the industry has begun to consolidate. With a more rational competitive environment, the profitability of UAF should improve as the economy stabilises.
During the year, the Group broadened its finance business portfolio. A Hong Kong mortgage business was launched in October 2015 through Sun Hung Kai Credit Limited. In addition, a Shanghai-based car finance leasing joint venture was also established with strategic partners that have strong distribution and financial service expertise. Both businesses have commenced with good momentum.
"The outlook for 2016 might remain a challenge as the Chinese economy is engaged in ongoing consolidation and transformation. However, we are well positioned with a diversified and solid balance sheet allowing us to capitalise on new opportunities that bring sustained value creation." Mr LEE concluded.
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Sun Hung Kai & Co. Limited (the "Group") is an investment and finance firm with a focus on Greater China.
Since its foundation in 1969, the Group has owned and operated market-leading businesses in financial services, striving to generate long-term capital growth for its shareholders. Leveraging on its heritage and operational experience, the Group invests across a diverse yet complementary portfolio of investment and finance businesses. Through an extensive branch and office network in more than 200 locations across Hong Kong and Mainland China, the finance business provides funding solutions to individuals, small businesses and corporates.
The Group currently has about HK$18 billion* in shareholders' equity. It is the major shareholder of leading consumer finance firm United Asia Finance Limited and a substantial shareholder of Sun Hung Kai Financial Group Limited.
*As of 31 December 2015
For more information about Sun Hung Kai & Co. Limited (SEHK: 86), please visit its website at www.shkco.com.
For enquiries, please contact:
Nancy Chen | (852) 3920 2823 | nancy.chen@shkco.com |
Juliana Chan | (852) 3920 2511 | juliana.chan@shkf.com |
Maggie Chan | (852) 3920 2513 | maggie.chan@shkf.com |
Sun Hung Kai & Co. Limited issued this content on 17 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 13 April 2016 10:18:04 UTC
Original Document: http://www.shkco.com/pdf/press/Press Release 2015 Annual Results (E).pdf
