SUN HUNG KAI & CO. LIMITED
Hong Kong, 20 August 2015 - 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$3,631 million for the first six months of 2015 (first half of 2014: HK$610 million).
The profit for the period included an approximately HK$3 billion profit from the sale of the Group's 70% equity interest in Sun Hung Kai Financial Group Limited ("SHKFGL") to a wholly-owned subsidiary of Everbright Securities Company Limited (SSE:601788).
Basic earnings per share were HK161.4 cents and the Board has declared an interim dividend of HK12 cents. In addition, the Board has resolved to allocate up to HK$1 billion to buying back the Company's shares on market pursuant to the Company's general mandate to repurchase shares.
Based on continuing operations, revenue of the Group for the six-month period increased by 9% to HK$2,169 million. Total loans and advances to customers amounted to HK$15.1 billion as at 30 June 2015, an increase of 16% on a year on year basis. During the period, the Group's Structured Finance and Principal Investments segment delivered solid returns with pre-tax contributions increasing by
51% and 2.1 times respectively. The Consumer Finance business operated through United Asia Finance Limited ("UAF") suffered a decline in profitability from the Mainland China business however, Hong Kong remained steady overall.
Despite facing economic headwinds in Mainland China, management remains confident about the market's longer term prospects and UAF's competitive positioning. For the first half of the year, UAF continued its geographic expansion in Mainland China and 14 new branches were added. A total of 153 branches were in operation there as of June 2015, with a customer base of nearly 69,000. Since October 2014, UAF has also embarked on a new loan marketing and guarantee business model and progress was satisfactory with good branch productivity. .
Mr LEE Seng Huang, Group Executive Chairman said, "The partial sale of our
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brokerage is an important milestone for the Group as management has delivered on the long stated objective of finding a suitable Chinese strategic partner for Sun Hung Kai Financial to accelerate its growth and capitalise on the fast liberalising Chinese capital markets. It has permitted the Group to crystalise the significant embedded value of this business whilst allowing us to continue to participate in its future growth under an even stronger operating platform."
"With the strengthened capital base from the SHKFGL transaction, the Group benefits from having a balanced mix of market leading loan businesses with different performance drivers providing diversification and stability. Our robust capital position and active investment strategy, will allow us to stay at the forefront of our industry while giving us an opportunity to develop new financial platforms, particularly in the fintech arena," Mr LEE concluded.
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Sun Hung Kai & Co. Limited (the "Group") is a financial services 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 value and capital growth for its shareholders. It specialises in Structured Finance and Consumer Finance with an extensive branch and office network in more than 200 locations across Hong Kong and Mainland China. The Group also maintains a significant strategic investment in its traditional Wealth Management and Brokerage business in Hong Kong. It follows an investment strategy that leverages its expertise to identify and invest in other financial services businesses.
The Group currently has about HK$18.3 billion* in shareholders' equity. For more information about Sun Hung Kai & Co. Limited (SEHK: 86), please visit its website at www.shkco.com.
*As of 30 June 2015
For enquiries, please contact:
Nancy Chen | (852) 3920 2823 | nancy.chen@shkco.com |
Juliana Chan | (852) 3920 2511 | juliana.chan@shkco.com |
Maggie Chan | (852) 3920 2513 | maggie.chan@shkco.com |
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