Far East Horizon (3360) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB18.04 billion, down 1.77% year-over-year, with profit attributable to ordinary shareholders at RMB2.09 billion, a 32.10% decrease due to lower interest-earning assets, reduced investment gains, and a one-off cross-border income tax expense.

• The company maintained a prudent operational strategy, emphasizing asset quality, liquidity, and risk management, while expanding industrial operations and innovating in technology, green, inclusive, pension, and digital finance.

• Financial and advisory segment revenue fell 6.02% to RMB10.86 billion, while industrial operation segment revenue grew 5.14% to RMB7.24 billion.

• Maintained leading industry position in financial leasing, equipment operation, and hospital operation, with extensive domestic and overseas presence.

• Gross profit margin declined to 45.03% from 46.03% year-over-year.

Financial highlights

• Operating profit before tax for H1 2024 was RMB4.23 billion, down 11.60% year-over-year.

• Basic earnings per share was RMB0.49, down 32.88% year-over-year.

• Return on average assets was 1.30% and return on average equity was 8.49%.

• Net interest margin increased to 4.47%, and net interest spread rose to 3.95%.

• Total assets reached RMB361.64 billion, up 2.89% from year-end 2023.

Outlook and guidance

• The group will continue its “finance + industry” strategy, focusing on technology, green, inclusive, pension, and digital finance, and targeting high-quality, resilient customers.

• Industrial operations will expand domestically and internationally, with Horizon Construction Development and Horizon Healthcare as key growth drivers.

• The board approved an interim dividend of HK$0.25 per share for H1 2024.

• Plans to continue share repurchases and further increase payout ratio in the future.