HONG KONG, Aug 28, 2019 - (ACN Newswire) - China Success Financial Group Holdings Limited ("China Success Finance" or the "Company", together with its subsidiaries the "Group", stock code: 03623 is pleased to announce its unaudited interim results for the six months ended 30 June 2019.
During the reporting period, the Group continued to promote the implementation of its business strategy. The Group's investment focused on guarantee business and the segment grew rapidly, bringing significant income to the Group. Therefore, the Group's total revenue surged 142.9% year-on-year to approximately RMB 39.1 million as compared with the same period in last year. However, the Group recorded a one-time investment net loss on joint ventures, meanwhile the Group's provision for impairment losses increased significantly as compared to the same period in last year. In addition, as the Group strived to transform its business, interest income from leasing and factoring decreased as compared to the same period in last year. As a result, the Group recorded a decrease in net profit during the first half of 2019. During the reporting period, the Group's losses before taxation and for the period were approximately RMB 19.9 million and RMB 20.8 million respectively (2018 Interim: approximately RMB 5.7 million and 9.7 million respectively). The Board did not recommend to distribute an interim dividend for 2019.
Mr. Zhang Tiewei, Chairman and Executive Director of China Success Finance indicated, "In the first half of 2019, the global economy continued to be clouded by uncertainties, while the gross domestic product growth rates of major economies experienced slowdown. The Group grasped opportunities created by national development trend and market upgrade, gradually propelling transition, improving strategic planning and steadily optimising business operations. Meanwhile, the Group adopted a multi-pronged approach to improve business structure, facilitated stable development of its traditional operations and actively promoted the development of its innovative business, in order to provide comprehensive, professional and efficient integrated financial services to customers. Capitalising on business innovation and transformation in recent years, achievements in business strategy have been gradually witnessed."
Regarding guarantee business, the Group's revenue significantly increased by 3.2 times to RMB 34.7 million during the reporting period (2018 Interim: RMB 8.2 million). The Group maintained stable operation of traditional businesses, whilst actively planning for the rapid development of financial inclusion. The Group also explored financial technology business by devoting more resources, establishing a talented technical team, and fostering strong win-win partnerships with reputable and sizable clients and platforms. Meanwhile, by utilising technological tools including the internet, big data and cloud computing, the Group managed to constantly improve its risk management system and boost efficiency in risk control. During the reporting period, as the number of new business partners and customers grew and scaled, the Group realised satisfactory business growth momentum, which laid a solid foundation for future business development.
For financial leasing and factoring business, the Group continued to provide financial leasing services to customers and satisfied the demand for leasing services during the construction within the Greater Bay Area. The Group made use of the resources from both Mainland China and Hong Kong to actively provide high-quality resource deployment services, while bolstering its cooperation mechanism and devising plans to contribute to the construction of the Greater Bay Area. During the reporting period, revenue from financial leasing and factoring business were RMB 5.2 million (2018 Interim: RMB 12.4 million).
Despite the generally stable and sound economic development in China in the first half of the year, the downside risk in China's economy will increase due to the recently imposed tariffs on Chinese goods by the U.S. and global economic slowdown. Looking forward to the second half of 2019, the Chinese government will focus on a series of measures, including encouraging healthy development of private investment, strengthening marketisation reform, propelling rapid development of financial inclusion and further opening up the economy, in order to optimise the business environment so as to broaden its appeal to foreign businessmen.
Looking forward, Mr. Zhang Tiewei said, "In the second half of 2019, the Group will seize opportunities and actively respond to government's policy in supporting micro, small and medium-sized enterprises, and steadily develop traditional business. The Group will also continue to develop innovative financial technology business, actively participate in propelling comprehensive services in the Greater Bay Area and provide diversified financial services to customers. Meanwhile, the Group established a fund to actively explore new investment opportunities through share purchases or acquisitions, in order to realise fast business development and enhance its core competitiveness, thus maximising returns for investors and shareholders."
About China Success Finance Group Holdings Limited
China Success Finance Group Holdings Limited is a leading private financial group in China, and the first financial group with guarantee service as a major business in China to be listed on the Main Board of The Stock Exchange of Hong Kong Limited. The Group has elevated from its traditional business in guarantee and microcredit since its listing, to a diversified and comprehensive financial service platform with services including asset management, fund management, investment and acquisition, financial leasing, financial guarantee, overseas capital, housing finance, and microcredit. Meanwhile, the Group maintained its business foundation in the Pearl River Delta Region with Foshan as the center, and provide comprehensive and professional financial services to the development of the Guangdong-Hong Kong-Macao Greater Bay Area.
For more information, please visit the website of China Success Finance Group Holdings Limited: http://www.chinasuccessfinance.com/